Loading...
HomeMy WebLinkAbout20132022.tiffBOARD OF ASSESSMENT APPEALS STATE OF COLORADO NOTICE OF HEARING SCHEDULE NO. R6783222 DOCKET NO. 63176 Petitioner's): WESTERN EQUIPMENT TRUCK, INC. V. Respondent: WELD COUNTY BOARD OF EQUALIZATION Tax Year(s): 2013 The Board of Assessment Appeals will hear the above -captioned matter: Date: Time: Location: Time Allocated: April 16, 2014 8:30 AM Mountain Time on a trailing docket 1313 Sherman Street Room 315, 3rd Floor Denver, CO 80203 1 hour(s) per side PLEASE TAKE NOTICE: The Board of Assessment Appeals uses a one -day modified trailing docket. Several cases are scheduled for hearing at 8:30 am each day. Cases are heard in the order determined by the Board, with the first case commencing at 8:30 am. At the completion of the first case on the docket, the Board hears the second case on the docket. The Board proceeds through the docket in this manner until all cases have been heard or until insufficient time remains to fully hear the remaining cases on the docket. Cases not heard will be continued to another day. You are required to appear for your hearing at 8:30 am on the date noted above and remain until your case is heard or continued, unless the Board removes your case from the trailing docket and schedules your case for a specific time later in the day. A list of cases removed from the trailing docket will be available at least one week prior to the hearing date. If your case is removed from the trailing docket, you are required to appear at the specific time scheduled by the Board. Please check the Hearing Schedule on the Board's web page(www.dola.state.co.us/baa/index.htm) or call (303) 866.5820 within one week prior to your hearing date to determine if your hearing has been scheduled for a specific time on the hearing date. If the Petitioner is a closely held entity as defined in CRS 13-1-127, the Petitioner must be represented by either an attorney licensed in Colorado or an officer of the entity. If the Petitioner is a domestic or foreign entity that is not closely held, as defined in CRS 7-90-102, an attorney licensed in Colorado must represent the entity in all legal proceedings before the Board. Pursuant to Board Rule 11, documentary evidence and witness lists must be received by the Board and the opposing party no later than April 2, 2014. If this date falls on a State Holiday, the documentary evidence and witness lists are due the following working day. Petitioner's Representative of Record: RYAN, LLC IAN JAMES 5251 DTC PARKWAY, SUITE 1045 GREENWOOD VILLAGE, CO 80111 tieentYL6tdi) CLittha/ /a- /4'-Z413 Mailed: December 3, 2013 CC. I-i Ci', 1a-3►�I� "20/3-,?oaa ASo085 PETITION TO STATE BOARD OF ASSESSMENT APPEALS 1313 Sherman Street, Room 315 Phone: (303) 866-5880 Denver, Colorado 80203 Fax: (303) 866-4485 Date: August 29, 2013 Property Owner: Western Equipment Truck, Inc. Subject Property: 26959 47 CR, Kersey Street Address City Schedule Number(s): R6783222 Appeals the decision of the Attach separate sheet if necessary Weld County El Board of Equalization Ii Board of Commissioners ❑State Property Tax Administrator For Office Use Only Docket No. Fee: Y N Check/Credit Card # p F K RECEIVED SEP 0 3 2013 WELD COUNTY C° ' ERs Dated: This Appeal concerns: l❑Valuation lRefund/Abatement O Exemption OState Assessed Tax Year: _ The subject property is currently classified as: D Agricultural DOil &Gas El Vacant Land Commercial lDExempt :l Personal IDPossessory Interest LI Industrial CI Producing ifResidential OState Assessed Mines 2013 Actual Value assigned to subject property: $2,205,000 Estimated time for Petitioner to present the appeal: Not less then 30 minutes. Appearance: ❑ Petitioner will be present at the hearing El Petitioner will be represented by an agent Petitionerwill be represented by an attorney IliMixed Use ONatural Resources Petitioner's estimate of value: $1,400,000 minutes or 4 hours. Board will allow equal time to County or Property Tax Administrator. UPetitioner will appear by telephone Petitioner is responsible for calling the Board at 303866-5860 on the scheduled date and time of hearing (Mountain Time Zone) Petitioner would like to appear by video conference Petitioner must contact the Board at 305.660-5880 at least 20 days in advance of the scheduled hearing to confirm availability of video conference equipment It the property owner is an entity, it must appear under the representation of an attorney licensed in Colorado except as follows. A closely held entity may be represented by an officer of the entity as 'long as the amount in controversy does not exceed $10,000, exclusive of costs, interest or statutory penalties. A closely held entity can have no more than three owners. See Section 13-1-127, C.R.S. A closely held entity that will be represented by art officer of Chit entity must provide a letter to the Board with this petition stating that it has no more than three owners and that the tax amount at issue does not exceed $15,000 as of August 7, 2013. A trust filing a petition as of August 8, 2012 may be represented by a trustee, an attorney or an agent. Filing Fee: g None D $ 33.75 $101.25 Petitioner is appearing pro se (self -represented) and has not filed more than two Petitions with the Board of Assessment Appeals during this fiscal year (July 1 — June 30). Petitioner is appearing pro se (self -represented) and has filed more than two Petitions with the Board of Assessment Appeals during this fiscal year (July 1 — June 30). Petitioner will be represented by an agent or by an attorney. In the space below, please explain why you disagree with the value assigned to the subject property The subject property is valued in excess of fair market value based on the three approaches to value; cost, market, and income. In addition, the property is valued in excess of other similarly situated properties. 01/14111 aCh MS 1111/13 CC C 1 J 0%2 2bI 3 - °�14 44-SatgS Required attachments to this form: El Assessor's or Property Tax Administrator's Notice of Valuation or Notice of Denial ® Decision of County Board of Equalization, County Board of Commissioners or Property Tax Administrator Attachments required under certain circumstances: ei A notarized Letter of Authorization if an agent will be representing Petitioner 0 A list of names, last known addresses and telephone numbers of co -owners or parties directly interested in the subject property if applicable. Certificate of Service I hereby certify that a true and correct copy of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed, faxed or hand delivered to: Weld County Board of Equalization o Board of Commissioners °State Property Tax Administrator at the following address: 1150 O Street, P.O. Box 758, Greeley, CO 80632 on 8/29/13 Date I hereby certify that a true and correct copy of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed, faxed or hand delivered to all co -owners or parties directly interested in the subject property on Date I hereby certify that four (4) true and correct copies of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed or hand delivered to the Board of Assessment Appeals at 1313 Sherman Street, Room 315, Denver, CO 80203 on 8/29/13 Date (One copy may be faxed to the Board but the original and two additional copies must be mailed or hand delivered.) Petitioner's Mailing Address is Required Even if Petitioner is Represented by An Agent or Attorney (per C.R.S. 39-8-1091 Signature of Agent WI pr-> orney t Ryan, LLC c/o Ian James Printed Name 5251 DTC Parkway, Suite 1045 Mailing Address Greenwood Village, CO 8O111 City; State, Zip Code Telephone: (720) 524-0022 e-mail, ianjames@ryan.com Attorney Reg. No.: Signature of Petitioner Western Equipment Truck Inc Printed Name 555 IH-35 South Mailing Address New Braunfels, TX 78130 City, State, Zip Code Telephone: (830)626-5258 Daytime number E -Mail: It is the Petitioner's responsibility to notify the BAA of any change of address. Petitioners are strongly encouraged to read the Instructions and Rules of the Board of Assessment Appeals prior to completing this Petition Form. The Instructions and Rules are available on the Web at www.dola_Colorado.gov/baa or may be requested by phone at 303-866-5880. July 30, 2013 CLERK TO THE BOARD PHONE (970) 336-7215, EXT 4226 FAX (970) 352-0242 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 WESTERN EQUIPMENT TRUCK INC 2055 1 AVE GREELEY, CO 80631 RE: THE BOARD OF EQUALIZATION 2013, WELD COUNTY, COLORADO DENIAL OF PETITIONER'S APPEAL AND AFFIRMATION OF ASSESSOR'S VALUE ACCOUNT NO.: R6783222 Dear Petitioner: On July 30, 2013, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. Section 39-8-101 et seq., considered your petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2013. The Board of Equalization found that the evidence presented at the hearing supported the value placed upon the above -described property as set forth below. Such evidence indicated the value was reasonable, equitable, and derived according to the methodologies, percentages, figures and formulas dictated by law. This decision is based upon the Board's analysis of the written and oral testimony presented by both parties. Further that it is the Board's decision that the taxpayer/did not present sufficient evidence to show that the value of the property was not reasonably valued by the Assessor. The Assessment and valuation of the Weld County Assessor was affirmed as follows: ACTUAL VALUE AS ACTUAL VALUE AS DETERMINED BY ASSESSOR SET BY BOARD $2,206,100.00 $2,205,000.00 2013-2022 AS0085 T -3,0-a0/,3 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2013, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2013, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the board of assessment appeals pursuant to section 39-8-108(1) or a denial of an abatement of taxes pursuant to section 39-10- 114 shall provide to the county board of equalization or to the board of county commissioners of the county in the case of an abatement, and not to the board of assessment appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the board of assessment appeals (b)(I) The assessor, the county board of equalization, or the board of county commissioners of the county, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the board of assessment appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the county may move the board of assessment appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the county attorney and shall be 2013-2022 AS0085 accompanied by a certification that the county assessor or the county board of equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the board of assessment appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the board of assessment appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number 303-866-5880 Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the /county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(1), the rules of Colorado appellate review and C.R.S. Section 24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. Section 39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e., Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for 2013-2022 AS0085 witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the .authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please contact me at (970) 336-7215, Ext 4226. Very truly yours, dl /, Esther E. Gesick, Deputy Clerk Weld County Board of County Commissioners Cc: Christopher Woodruff, Weld County Assessor RYAN 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 RUSH TRUCK CENTERS OF COLORADO, INC 26956 CR 47 GREELEY, CO 80631 2013-2022 AS0085 Weld County CHRISTOPHER M. WOODRUFF COUNTY ASSESSOR BRENDA DONES, DEPUTY ASSESSOR VALUATION REPORT OF COMMERCIAL PROPERTY FOR Weld County Board of Equalization WESTERN EQUIPMENT TRUCK INC PETITIONER VS. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 0961-24-2-02-001 Schedule Number: R6783222 Log Number: 7621 Date: 07/30/2013 Time: 1:30 Board: CBOE PREPARED BY CHARLES JACK WELD COUNTY ASSESSOR'S OFFICE STAFF APPRAISER ASSESSOR'S VALUE COMMERCIAL $2,206,100 2013-2022 Page 1 Weld County CHRISTOPHER M. WOODRUFF COUNTY ASSESSOR BRENDA DONES, DEPUTY ASSESSOR VALUATION REPORT OF COMMERG AL PROPERTY FOR Weld County Board of Equalization WESTERN EQUIPMENT TRUCK INC PETITIONER VS. WELD COUNTY ASSESSOR'S OFFI CE RESPONDENT Parcel Number: 0961-24-2-02-001 Schedule Number: R6783222 Log Number: 7621 Date: 07/ 30/ 2013 Time: 1:30 Board: CBOE PREPARED BY CHARLES.J4CK WELD COUNTY ASSESSOR'S OFFICE STAFF APPRAI SER ASSESSOR'S VALUE COMMERCIAL $2,206,100 CBOECOMM 010998 Page 1 SALI ENT FACTSAND CONCLUSI ONS Purpose of Appraisal Property Rights Appraised Location Land Area Zoning To determine Market Value as of 1/ 1/ 13 based on an appraisal date of 6/ 30/ 12. Unencumbered fee simple interest. 26959 CR47 KERSEY 335,176 Square Feet Property Type Commercial 1- Service Garage (Truck Sales & Service/ Repair Facility) Year Built Quality Qass Number of Stories Improvement Sq. Ft. Value Indications: Land Cost Approach Market Approach Income Approach 2006 Average Metal Frame 1 42,425 $351,935 $2,764,310 $2,333,375 $2,205,000 Assessor's Value $2,206,100 CBOECOMM 010998 Page 2 CBOE_COMM _010998 Page 4 SJ B.ECT SKETCH r 96.0' Non -Calculated Area Patio area 687.6' Parts Storage Area 8.0' \ 41.0'. 251 18 service bays 18 Openers Concrete drive and aprons 345.0' 26.0' ' 346.0' Total Building Size 42,425 Sq. Ft. Service Shop Area 27,600 Sq. Ft. Parts Storage 7168 Sq. Ft. Office I Sales - etc. 7657 Sq. Ft. Sketch by $ex IV"' Non -Calculated Area Covered entry 687.5' a 45.0' 4- 10 service bays 10 openers Heavy repair area 5 ton craneway 2 bays Concrete drive and aprons CBOE_COMM _010998 Page 5 Waif County, Coforadn Wee .= in An L'caaan Weld County- Internet Mapping lit map Is a use gsrraoso apt torn an name flapprg sae and Is AQ 9~1 arm only Cato "oyes tat a on Ihls ru'ap .. far or r not S rata ctnr&, a- ctw • Saba THIS MAP IS NOT T O BE USED FOR NAMAT1Od. Q C CBOECOMM 010998 Page 6 COST APPROACH SUMMARY The Assessor is currently using Marshall and Swift cost tables for the cost approach of commercial properties in Weld County, which has been approved by the Division of Property Taxation to be utilized by Colorado Assessors. The structure has been classified properly utilizing the Marshall and Swift Valuation service and an appropriate value assigned. A land value has likewise been established through the utilization of vacant land sales of comparable properties. Improvement Value $2,412,375 Land Value $ 351,935 TOTAL VALUE BY THE COST APPROACH $2,764,310 CBOECOMM 010998 Page 7 COST APPROACH LAND VALUE Sales utilized to establish the value in the subject neighborhood are from 2011 and the first six months of the 2012 market for the 2013 assessment date. The comparative sales approach is the most reliable method of land valuation. Pursuant to 39-104-(10.2) (c) C. R. S., the Assessor may utilize sales from lily 2007 through dine 2012 to establish the proper value, if sufficient information is not available in the prior 18 months. Also, comparables outside the subject property area may be used. The Weld County Assessor has an established ongoing sales confirmation and validation program for property transactions used in developing value. The land size of the subject is 335,176 square foot. Comparable commercial land in the subject area range from $0.91 to $1.30 per sq ft. A value of $1.05 psf or $351,935 was chosen to be applicable for the subject property when considering its location. Comp # 1 2 3 Parcel Number Sale Date Sale Price Land Sze Per Sq Ft 096317400057 09/ 09/ 11 $176,000 175,547 $1.00 096316300011 12/20/11 $392,200 301,000 $1.30 096316300009 12/ 23/ 09 $445,000 490,878 $0.91 Average sales: $1.05 Median: $1.00 ASSESSOR'S SUB ECT LAND VALUE $351,935 CBOECOMM 010998 Page 8 Cost Approach Summary PARCEL NUMBER 96124202001 PROPERTY OWNER Western Equipment ADRESS S 26959 C R 47 CITY, STATE, ZIP Kersey DATE OF APPRAISAL 06/30/12 OCCUPANCY: Truck Center NUMBER OF STORIES 1 FLOOR AREA (SQ. FT.) 42,425 AVERAGE STORY HEIGHT 18 CLASS: Steel YEAR BUILT 2006 COST RANK Average EFFECTIVE AGE 30 HEATING AND COOLING Radiant 82% ESTIMATED LIFE Package- air 18% RCN BASIC STRUCTURE COS' UNITS COST TOTAL Service Garage 42,425 $46.45 $1,970,641 perimeter adjustment 0.935 wall height adjustment 1.086 Current multiplier 1.03 Local multiplier 0.97 Adjusted RCN Basic Cost $1,999,208 Add-ons Concrete slab 238,700 2.98 $711,326 Total RCN $2,710,534 LESS DEPRECIATION PHYSICAL 0.11 $298,159 FUNCTIONAL 0.00 $0 ECONOMICAL 0.00 $0 RCN LESS DEPR. $2,412,375 ADD IN LAND VALUE $351,935 TOTAL VALUE $2,764,310 $65.16 CBOE_COMM_010998 age MARKET APPROACH SUMMARY Real property for the tax year 2013 must be valued utilizing the level of value for the period of one and one-half years immediately prior to June 30th, 2012. A period of five years immediately prior to lily 1, 2012 shall be utilized to determine the level of value if adequate data is not available from such one and one-half year period to adequately determine the level of value for a dass of property. Said level of value shall be adjusted to the final day of the data -gathering period. Changes occurring between base years are not to be accounted for until the fol lowi ng level of value is implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, eta, creation of a condominium, new regulations restricting or increasing the use of the land, or a combination thereof {39-1-104(11)(b)(I),CRS}. The comparable sales in this report were selected using county records, as well as the Multiple Listing Services. The Weld County Assessor's Office has verified that the comparable sales are arms -length transactions based on review of the Real Property Transfer Dedaration, telephone or personal confirmation interviews and physical inspections to confirm property characteristics at the time of sale. Based upon investigation and analysis, it is the opinion of the appraisers that the value of $2,333,375 accurately reflects the market value of the subject property. VALUE ASI NDICATED BY THE MARKET APPROACH $2,333,375 CBOECOMM 010998 Page 10 COMPARATIVE SALES APPROACH SALE # Subject 1 2 3 4 5 6 7 Comments Truck Center Truck Service Garage Auto Center Auto Center Truck Service Service Garage Service Garage Service e Gara 9 Parcel# 96124202001 96117411001 95708401001 95708401003 96117402008 96117102028 96108130001 96108401025 Address 26959 CR 47 2600 2 Av 753 Chamopion 1015 Champion 2435 2 Av 2111 2 Av 1403 1 Av 1616 2 Av Kersey Greeley Windsor Windsor Greeley Greeley Greeley Greeley Grantor Digby Compass Bank CP holdings Bar SU SECO FSY FSY Grantee Trimac Southgate SB Ventures Hemphill Colo Premium Northland All Around Sale Date 3/1/2011 3/8/2011 5/11/2011 9/30/2011 3/10/2010 5/2/2011 11/8/2010 Sale Price Assessor value $2,206,100 $850,000 $2,000,000 $1,835,000 $1,500,000 $690,000 $750,000 $610,000 Land Size 335,176 316,198 417,094 302,411 217,800 73,475 61,064 85,529 L/B Ratio 7.90 12.27 10.53 17.15 12.50 3.67 4.47 11.43 Bldg SF 42,425 25,768 39,607 17,635 17,419 20,000 13,660 7,480 Sale psi $32.99 $50.50 $104.05 $86.11 $34.50 $54.90 $81.55 Quality/Age 25.0% similar similar similar 20% similar 10% Size -5.0% similar -10% -10% -7% -15% -20% Adj Sale PSF $39.59 $50.50 $93.64 $77.50 $38.98 $46.65 $73.40 Comps Range: $38.98 - $93.64 Comps Avg: $60.04 Comps Median: $50.50 Value per Market Sales $55.00 x 42,425 = $2,333,375 CBOE_COMM 010998 Page 11 121.0' COMPARABLE SALE #1 ACCOUNT NUMBER: R6778052 PRIMARY OCC: Service Garage SECONDARY OCC: ADDRESS: 2600 2 AV, GREELEY RECEPT NUMBER: 3753285 GRANTOR: DIGBY FAMILY LLLP GRANTEE: TRIMAC Sketch by epee N M 151.0' 0 0 0 Blt 1984 0111968 16' wh Space Heat 18271.0 sq. It. Service Garage Bit 1698 Class S 10' to 16'wh Office 3,436.0 sq ft Service Garage 21,331.0 sq ft 24,767.0 sq. ft. 51.0' BM 971 3060.0 sq. ft. 46.0' Office Package -air 2576.0 sq. ft. Office 860.0 sq. ft. 56.0' COUNTY: WELD PARCEL NUMBER: 096117411001 PERCENT: 100% PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: 3/1/2011 $850,000 43.0' 0 0 N YEAR BUILT: 1968 CLASS: S EFFECTIVE AGE: 1985 LAND/BLDG RATIO: 12.2709 LAND SIZE (SF): 316,198 LAND VALUE: $442,677 BLDG SIZE (SF): 25,768 IMPS PRICE/SF: $15.80 WALL HEIGHT: 16 SALE PRICE/SF: $32.98 STORIES: 1.00 INTEREST RATE: BSMNT SIZE: DOWN PYMT: BSMNT FINISH: LOAN TERM (YRS): COMMENTS: The subject is a trucking terminal which includes 14% office, a dispatch center, maintenance facility with pits, a warehouse, parts and tool storage, large parking parcel, diesel tanks and pump, and 1,000 sq ft residential modular . Page 12 60.0' CBOE_COMM _010998 Page 1 COMPARABLE SALE #2 ACCOUNT NUMBER: R4278006 PRIMARY OCC: SECONDARY OCC: THIRD OCC: ADDRESS: Complete Auto Dealership 753 CHAMPION DR WINDSOR RECEPT NUMBER: 3755488 GRANTOR: COMPASS BANK GRANTEE: SOUTHGATE ONE LLC YEAR BUILT: 2006 EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: QUALITY: COMMENTS: 417,094 39,607 24 1.00 Average 1i? Sec. SEr ce RecePbcn lm 0 I, n T0 2 C c m E 0 N-i 969 06.1 1$ P 4 Vesicle deli+ery Cereer SIC' �YM W; Ipa F" 1 ?'c 74 ewsa g 0Xe0 e 33 Stall Service flea COUNTY: WELD PARCEL NUMBER: 095708401001 PERCENT: 100.0% PERCENT: PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: 3/8/2011 $2,000,000 $2,000,000 C 10.5308 $938,462 $26.80 $50.49 XI Full Service Auto Dealership Tctal Sq. Ft /3S60? 4 Bank sale to Martin Lind. Plans to utilize for undisclosed purpose, other than auto dealership. Page 13 CBOE_COMM _010998 Page 2 .► _ 'rte-. `3�,1t�#•'wy,fnrk-?... laraimis ate COMPARABLE SALE #3 ACCOUNT NUMBER: R4278206 PRIMARY OCC: Complete Auto Dealership ADDRESS: 1015 CHAMPION DR WINDSOR RECEPT NUMBER: 3768209 GRANTOR: CP SAN ANTONIO RE HOLDCO LLC GRANTEE: SB VENTURES LLC YEAR BUILT: 2007 EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: QUALITY: 302,411 17,635 24 1.00 Average 77.7' 58.5' Wash Bay 1 s Will t tight 21'Wall Height Shop RJR 32.2' First Floor 17634.6 S.F. 4.0' 0 0 R/R R/R 12.0' Showroom 24' Wall Height 111.9' COUNTY: WELD PARCEL NUMBER: 095708401003 Sketch by Apex M" PERCENT: 100.0% SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: 5/11/2011 $1,835,000 $1,835,000 C 17.1483 $680,425 $65.47 $104.05 COMMENTS: Property was vacant for 2 years. Purchase price was analyzed and given serious consideration from corporate headquarters. Considered to be market value. Page 14 CBOE_COMM _010998 Page 3 COMPARABLE SALE #4 ACCOUNT NUMBER: R3564186 PRIMARY OCC: Service Garage SECONDARY OCC: ADDRESS: 2435 2 AV, GREELEY RECEPT NUMBER: 3801564 GRANTOR: BAR S U INC GRANTEE: HEMPHILL TRUCKING INC YEAR BUILT: EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: 1992, 2005 217,800 17,419 8, 24 1.00 GRE IM Average aan a f ca C !sip -rand -- COUNTY: WELD PARCEL NUMBER: 096117402008 PERCENT: 100.0% PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 9/30/2011 $ 1,500,000 S 12.5035 $326,700 $67.35 $86.11 COMMENTS: The suject sale includes 168 sf scale house, 60 ton truck scale, 7,650 sq ft service garage blt in 1992 , and a 9,600 sq ft service garage blt in 2005. CBOE_COMM_010998 Page 4 COMPARABLE SALE #5 ACCOUNT PRIMARY OCC: SECONDARY OCC: R3464486 Service Garage ADDRESS: 2111 2 AV, GREELEY RECEPT NUMBER: 3680757 GRANTOR: SECO BRUSH LLC GRANTEE: COLORADO PREMIUM PROPERTIES YEAR BUILT: EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: 1967 1985 73,475 20,000 16 1 GRE IM Average 219.0' 200.0' 88.0' BLT 1967 14'WH Class C Office Areas Truckers Lounge 80.0' BLT 1967 18' WH space heat 32.0' BLT 1971 18' WH space heat Sketch by Apex IVMNdowsw 11.0' 205.0' SERVICE GARAGE 20000,0 sf COUNTY: WELD PARCEL NUMBER: 096117102028 PERCENT: 100% PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 3/10/2010 $690,000 C 3.67 $132,255 $27.88 $34.50 Page 16 44.0' 12.0' 100.0' CBOE_COMM _010998 Page 5 COMPARABLE SALE #6 ACCOUNT NUMBER: R6779757 PRIMARY OCC: Service Garage SECONDARY OCC: ADDRESS: 1403 1 AV, GREELEY RECEPT NUMBER: 3766505 GRANTOR: FSY PARTNERSHIP GRANTEE: NORTHLAND PROCESS PIPING INC YEAR BUILT: 2002 EFFECTIVE AGE: LAND SIZE (SF): BLDG SIZE (SF): WALL HEIGHT: STORIES: BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: COMMENTS: 61,064 13,660 12 1.00 Average The subject has 1,800 sf of office area. O 0 a 187.0' 1760.0 Office 44.0' 5720,0 Service Garage Olt 1989 Class S Space Heat 16'wh Total 7,480 sq.ft. 143.0' Sketch by Apex IV'" COUNTY: WELD PARCEL NUMBER: 096108130001 PERCENT: 100.0% PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 5/2/2011 $750,000 S 4.47 $122,128 $45.96 $54.90 Page 17 O 0 a CBOE_COMM_010998 Page 6 Ii rams �-°=- -are c COMPARABLE SALE #7 ACCOUNT PRIMARY OCC: SECONDARY OCC: R3311386 Automotive Center ADDRESS: 1616 2 AV, GREELEY RECEPT NUMBER: 3730846 GRANTOR: FSY PARTNERSHIP GRANTEE: ALL AROUND ROUSTABOUT YEAR BUILT: 1989 EFFECTIVE AGE: LAND SIZE (SF): 85,529 BLDG SIZE (SF): 7,480 WALL HEIGHT: 16 STORIES: 1 BSMNT SIZE: BSMNT FINISH: ZONING: QUALITY: COMMENTS: GRE IM Average COUNTY: WELD PARCEL NUMBER: 096108401025 PERCENT: 100% PERCENT: SALE DATE: SALE PRICE: ADJ SALE PRICE: CLASS: LAND/BLDG RATIO: LAND VALUE: IMPS PRICE/SF: SALE PRICE/SF: INTEREST RATE: DOWN PYMT: LOAN TERM (YRS): POINTS PAID: 11/08/2010 $610,000 S 11.43 $256,587 $47.25 $81.55 Page 18 CBOE_COMM _010998 Page 7 I NCOME APPROACH SUMMARY The Weld County Assessor has appropriately considered the IncomeApproach to value for the aibject property on appeal. The Assessor has gathered income information from local commercial properties for the time frame of January 1, 2011 through June 30, 2012. This information, combined with statewide and industry -wide data, is used to determine typical income and expenses for various property types. In condusion of the IncomeApproach, the Assessor has considered both groups of data and has put more emphasis on the local factors and data than the state and national data. This information was then applied to the subject property to arrive at an appropriate Income Approach Value. TOTAL I NCOME VALUE FOR THE SUBJECT PROPERTY $2,205,000 Page 19 CBOECOMM 010998 Page 8 MARKET INCOME WORKSHEET Parcel : 096124202001 Name: Western Equipment Address: 26959 C R 47 Kersey Bldg Sq Ft Use 42,425 Truck Center/Service Garage Avg Rent PSF Subject Rents t Annual Rent per Annual Gross Area Rent PSF Month Income Main Fir PSF 42,425 $5.00 = $17,677 $212,125 LessVacancy & Expenses Vacancy 7% $14,849 EGI $197,276 Expenses mgmt 3% $5,918 R/R 2% $3,946 Vet Incom-. $4.42 $187,412 Net Income/Overall Cap Rate = Property Value Property Value Cap Rate + Eff Tax Rate 0.085 0.0850 $2,204,852 Estimated Property Value $2,205,000 Value psf $51.97 lAiUtMM_01 U99d Page 9 Comparable Market Rents Parcel occupancy 120723304027 095708401002 120723304027 095904403006 070931000008 096105205009 096120208013 120723304007 131314200078 096108130001 095714202003 Average Median square footage Auto Center 15,265 Auto Center 39,607 Manuf/Whse 37,944 Warehouse 62,280 Manuf/Whse 10,972 Warehouse 11,430 Warehouse 8,720 Warehouse 20,250 Warehouse Service Garage Ind. Flex $5.85 $5.00 39,120 13,660 39,125 NNN N psf $4.72 $4.54 $8.50 $7.98 $4.60 $5.00 $6.88 $6.50 $5.00 $5.00 $5.65 Page 21 CBOECOMM 010998 Page 10 CONCLUSION Real property for the tax year 2013 must be valued utilizing the level of value for the period of one and one-half years immediately prior to June 30th, 2012. A period of five years immediately prior to lily 1, 2012 shall be utilized to determine the level of value if adequate data is not available from such one and one-half year period to adequately determine the level of value for a dass of property. Said level of value shall be adjusted to the final day of the data -gathering period. Changes occurring between base years are not to be accounted for until the fol lowi ng level of value is implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, eta, creation of a condominium, new regulations restricting or increasing the use of the land, or a combination thereof {39-1-104(11)(b)(I),CRS}. The subject property has been classified as Commercial Property for assessment purposes. Commercial property value shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. {39-1-103(5)(a) C. R. S.} The Assessor has considered all throe approaches to value for the subject parcel on appeal. FINAL RECONCILIATION After consideration of the cost, market and income approaches, it isthe Weld County Assessor's opinion that the value of $2206,100 , most accurately reflects the value of the subject property in Weld County for the 2013 tax year. COST APPROACH MARKET APPROACH I NCOM E APPROACH $2,764,310 $2,333,375 $2,205,000 ASSESSOR'S VALUE COMMERCIAL $2206,100 Page 22 CBOECOMM 010998 Page 11 Ru s — Co - 7 C Greeley NOTICE OF DETERMINATION Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION R6783222 2013 4039 L1 HWY 34 TRANSPORTATION CENTER RPLT 26959 47 CR KERSEY, CO PROPERTY OWNER WESTERN EQUIPMENT TRUCK INC 2055 1 AVE GREELEY, CO 80631 PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW COMMERCIAL 0 2,206,100 TOTAL $ $2,206,100 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: CM03 - After review of your property, we have made adjustments. This was done because of additional information obtained, or provided thru the appeal process. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing real property appeals is July 15. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Date of Notice: 6/27/2013 Telephone: (970) 353-3845 Fax: (970) 304-6433 Office Hours: 8:00 AM - 5:00 PM Please refer to the reverse side of this notice for additional information. RYAN 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 RECEIVED JUL 1 7 2013 WCOMMISSIONERS S 15-DPT-AR PR 207-08/13 R6783222 18631 Rush Enterprises, Inc. CO - RTC Greeley Email APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 1 through August 5 at 1400 N 17 AVE. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 15 for real property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 12, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 1313 Sherman Street, Room 315 Contact the District Court in the County Denver, CO 80203 where the property is located. See your (303) 866-5880 local telephone book for the address and www.dola.colorado.qov/baa telephone number. Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2012? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $ 1,160,000 What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraisal, etc.) The property is valued in excess of fair market value based on the three approaches to value; cost, market and income. In addition, the property is valued in excess of other similarly situated properties. I ATTES TION I, the ersigned ne agent"' of the property identified above, affirm that the statements contained her ndCtfn a tt ereto are true and complete. (720)524-0022 July 15, 2013 Telephone Number Date 216 Attach letter of authorization signed by property owner. Address 15-DPT-AR PR 207-08/13 R6783222 18631 LETTER OF'AUTHRRIZAT)ON FOR PROPERTY TAX REPRESEN [ATIOI�i Western Equipment Truck Inc Property Owner See Attached Soiled Property Weld County Assessor, CC Jurisdiction anct State 2013/20i4 Year This. triter authorizes Ry ei. LLC and its affiliate; Ryan raurt Compiianoaf 8eivicek LLC: to ierpepsawtE.- the above -named property as its property tsaragent In them anti** named abet • T[tit authorization include . but It not liinrllad to: tag property renditions or retiirna; sigriitiQ :and t appeals; examining property. trou records; ands appearance" before .the assessor; • beard* ecpsailization or review, or other governmental agencies responsible for the assessment of pope* If there ere any: queetiont concerning this authonartion please a4nteet:. 1erfeAowifg: A copy of any ao>i or apps ., attached to this autherfaitlertfat been provtdad.10 thek undersigned propeltttaewnetA• for scanned knageolitirignabirir below std cdr di 0* original signing erthis auk: laid the document cardieinkittioceiglnal signet** wig fe submitted uportregUeet Tharaultiorizadonshefi remain effeceveas l►p ss p `bg ai .'1 * w * ravened ins. by , overt c The: pereee ligning belowtertiftet that they are duiii`epp ed Welt: representative or apiMtit4#hea a ner'and that. t ei have the legal capacuy b execute -t ssue- Title &tor*_and suhecriblitt:#rei ee Brae: : ..W I& &tottLNumker_ NIVAAddresa 26936 CR. 47, Kersey R4100106 84100206 26936 CR 47, Kersey R4100306 26956 CR47, Kay 14100406 26936 CR47, Kersey R4100506 26936 CR.47, Kersey R4100606 26956CR'47. Kersey R4100706 26936 CR 47. Kersey 841001106 26936 CR 47, Kersey 84100906 26956 CR 47, Kay Ryan 00 la ovative solutions to Taxing Problems. July 15, 2013 CERTIFIED RETURN RECEIPT 7011 1150 0001 8720 8486 Weld County Board of Equalization 1150 O Street, PO Box 758 Greeley, CO 80631 Re: 2013 Property Protests 5251 DTC Parkway One DTC Suite 1045 Greenwood Village, CO 80111 Tel. 720.524.0022 Fax 720.524.0651 www.ryan.com Enclosed are the 2013 Objection to RS Property Assessments for the fol I owing taxpayers and parcels numbers: Taxpayer LN RS Estate LLC LN Real Estate L LC New Windsor Staion LLC New Windsor Station LLC New Windsor Station LLC New Windsor Station LLC NEW WINDSOR STATION LLC NEW WINDSOR STATION LLC REALTY INCOME CORPORATION Western Equi Rua* Truck Inc Inland PPD Hudson Associates LLC Parcel R0208287 R8372200 R2429803 R2429903 R2430003 R2430303 R2431003 R2431103 120723202014 096124201001 R6775763 If you havequestions, or need additional information, please contact Mr. Ian Janes at (720) 524- 0022. Sincerely, Michelle Turner Senior Analyst 0 0 Greenwood Village, Colorado 80111 7011 1150 0001 8720 8486 00 In p k '. O • N M coDCD r '^ 0 00 O • P-+ CD U W N U O W 0. a) 0 .— 4) O N O CO O LEASE AGREEMENT s is a Lease Agreement (the "Lease") by and between the hereinafter -specified Landlord and Tenant dated to be effective as of the Effective Date set forth herein. WITNESSETH: In consideration of the mutual covenants contained herein, Landlord and Tenant agree as follows: ARTICLE ONE DEFINITIONS AND BASIC TERMS 1.1. Definitions and Basic Terms. For the purpose of this Lease, the following terms shall have the meanings hereinafter specified, as follows: a. Landlord: WESTERN EQUIPMENT & TRUCK, INC. b. Tenant: RUSH TRUCK CENTERS OF COLORADO, INC. c. Leased Premises or Property. That certain real property located at 26956 WCR 47, Greeley, Colorado 80631, which is more particularly described and outlined. in red on Exhibit A. which is attached hereto. d. Base Rent. $10,000 per month. 4/2.005 ( (Q13D 12QO.5) e. Completion Date; Landlord's Improvements. The "Completion Date" for Landlord's Improvements" sha11 be that date that Landlord's Improvements have been Substantially Completed and all permits for the use and operation of the Leased Premises as a full service truck dealership have been issued by all required Governmental Authorities and Tenant has the ability to connect to all utilities necessary for Tenant's business operations. f. Commencement Date. The first day of the first month, which follows the earlier of: thirty (30) days from the Completion Date of Landlord's Improvements; or, Tenant's commencement of business operations with the general public. g. Termination Date. The last day of the 120th month of the Lease, measured from the Commencement Date of the Lease, or such other earlier date as this Lease is terminated pursuant to the terms of this Lease. f vier 14'11 Lease 062905 Lease Agreement h. Purpose of Tenancy and Use of Leased Premises. Any lawful purpose, including a full service truck dealership including, but not limited to, the sale of new and used trucks and trailers and truck and trailer parts, truck and trailer rentals, truck and trailer service and repair, including a paint and body shop. It is understood and agreed that one part of the authorized use is a truck repair facility as well as a body shop, which include the use of oil and other petrochemical products, paint, solvents and other similar materials and that the processes and activities of Tenant are to include the repair of damaged trucks, tractors and trailers. Landlord gives specific approval of Tenant's installation and use of a paint booth, the utilization of related equipment in Tenant's body shop to be located on the Leased Premises and the installation and use of above ground storage tanks to hold Hazardous Substances, which are used in the business operations of Tenant, so long as such use is in compliance with all Governmental Requirements. i. Lease Year. The twelve-month period following the Commencement Date of the lease team, and each subsequent twelve-month period, which follows the annual anniversary date of the Commencement•Date of the Lease Term. j. Governmental Requirements. All federal, state and local laws, ordinances, rules and regulations regarding the construction, use and operation of the Property and Leased Premises. k. Effective Date. The date this Lease shall be effective and binding upon the parties is June 30, 2005. 1. Sublet The term "sublet" shall be deemed to include the granting of licenses, concessions and other rights of occupancy of any portion of the Leased Premises, excepting only customary' leased department arrangements under which such leased department is not operated under which such leased department is not operated under a separate name but is held out to the public as an integral part of the Leased Premises. m. Hazardous Substances. The term "Hazardous Substances" includes toxic substances and are materials and substances, whose use and discharge are regulated by Applicable Environmental Laws. n. Discharge. The term "Discharge" shall mean and refer to the release or discharge of any Hazardous Materials on, under, in, above, to or from the Leased Premises. o. Remedial Activities. The term "Remedial Activities" shall mean and refer to any investigation, monitoring, clean up, containment, removal, storage, or restoration work, which may be required under any Applicable Regulations due to the Existence or Discharge of Hazardous Substances. p. Applicable Regulations. The term "Applicable Regulations" means all regulations issued pursuant to any Environmental Laws. q. Environmental Laws. The term "Environmental Laws" shall mean all federal, state, and local laws relating to protection of public health, welfare, and the environment. 2 Lease Agreement r. Business Day(s). The terms "Business Days" or "Business Days" shall mean any day of the year other than Saturday, Sunday, and any federal holiday. If the last day to perform under a provision of this Agreement is other than a Business Day, the time for performance shall be extended until 5:00 p.m., Denver, Colorado, time, on the next Business Day following such day. s. Substantially Completed. The term "Substantially Completed" means where Landlord's Improvements: have been completed in all material respects in a good and workmanlike manner; are fully capable of being used in the operation of Tenant's business, with only minor "punch list" discrepancies remaining; are built in compliance all applicable Governmental Requirements; and have received all permits required by all applicable Governmental Authorities for the use of the Leased Premises by Tenant. t. Governmental Authority or Authorities. The terms "Governmental Authority" or "Governmental Authorities" means any agency, bureau or department of the United States of America or the State of Colorado or any political subdivision of the State of Colorado, including, but not limited to the City of Greeley and the County of Weld as well as any public utility or any governmental or quasi -governmental corporation. u. Landlord Improvements. The term "Landlord Improvements" shall mean the site improvements and building as described and set forth in Schedule 1.1 (n), which is attached hereto. v. Tenant Improvements. The term "Tenant Improvements" shall mean the building alterations and improvements described and set forth in Schedule 1.1 (v), which is attached hereto. w. Landlord Construction Period. The term "Landlord Construction Period" means that period of time between the Start Date and the Commencement Date. x. Security Deposit. The term "Security Deposit" shall mean the sum of $20,000, which Tenant shall deposit with Landlord within ten (10) days from the Completion Date. y. Start Date. The term "Start Date" shall mean that date, which is as soon as is reasonably practicable after the Effective Date of this Lease, but in no event later than thirty (30) days from the Effective Date of this Lease. z. Affiliated Entity or Entities. The terms "Affiliated Entity" and Affiliated Entities" shall mean any entity, which has Rush Enterprises, Inc., as its majority owner. ARTICLE TWO GRANTING CLAUSE 2.1 Grant of Leased Premises. Landlord demises and Leases unto Tenant and Tenant takes from Landlord, the Leased Premises upon the terms and conditions set forth in this Lease. Lease Agreement ****** ARTICLE THREE TERM 3.1 Initial Term of Lease. The initial term of this Lease (the "Initial Term") shall begin on the Commencement Date and shall terminate on the last day of the last full calendar month of the Initial Term, which is one hundred twenty (120) calendar months from the Commencement Date of the Lease of the Initial Term, unless sooner terminated in accordance with the terms and conditions herein set forth. Any occupancy of the Leased Premises by Tenant prior to the scheduled Commencement Date shall be subject to all of the terms of this Lease, other than the payment of Rent, and shall. not affect the Termination Date of the Lease. 3.2 Two Renewal Terms; Tenant's Options. Provided Tenant is not then in default under the provisions of this Lease, Tenant shall have two (2) successive option of renewing this Lease for an additional 60 month term (a "Renewal Term"). Such options shall be deemed exercised by Tenant, unless Tenant gives Landlord written notice, at least 90 days prior to the end of the then expiring Initial or Renewal Term of the Lease of Tenant's intention not to renew this Lease for the next Renewal Term. In the event Tenant exercises either of its options to renew this Lease for the then forthcoming Renewal Term, the Base Rent shall be adjusted to an amount equal to the "Fair Market Rental Rate" existing as of ninety -days prior to the Commencement Date of such Renewal Term. Such "Fair Market Rental Rate" shall be determined in accordance with the Fair Market Rental Rate Rider attached hereto as Exhibit B. ARTICLE FOUR RENT AND OTHER AMOUNTS TO BE PAID BY TENANT 4.1 Payment of Base Rent and Other Sums Due. Tenant shall pay to Landlord the Base Rent described in Sub -Article 1.1(d), each month in advance, on the first day of each calendar month during the Lease Term, commencing on the Commencement Date of the Lease. All payments of Base Rent, and all other payments required of Tenant hereunder, shall be paid to Landlord at the address designated in Article 17 or at such other place as Landlord may from time to time designate in writing. 4.2 Additional Rent Amounts. To pay to the Landlord those items listed below, which amount will be considered as additional Rent, and shall be due on the presentation of the appropriate bill to the Tenant; (1) all taxes, assessments, and other governmental charges which are levied against and may create a statutory lien upon the Leased Premises which are levied or assessed during the term of this Lease (excluding any interest or penalties, which are assessed or become due as the result of the failure of Landlord to have made any payment on a timely basis and excluding any assessments or other charges, which are assessed by any Governmental Authority due to the actions or inaction of Landlord); (ii) all premiums for fire and extended coverage insurance, property damage, and liability insurance in such amounts as the Landlord may reasonably require; and (iii) except as specifically allocated to Landlord pursuant to this Lease, all costs and expenses of repairing and maintaining the building, all of its components and 4 Lease Agreement ****** all land surrounding the building. In lieu of paying Landlord for taxes and insurance, Tenant may have the tax accounts placed in Tenant's name, secure insurance through Tenant's carrier and pay for all taxes, assessments and insurance directly to the appropriate taxing authority and insurance carrier. 4.3 Liability for Returned Checks. Tenant shall also be liable to Landlord in the amount of $25.00, for any check, which is returned to Landlord unpaid, for whatever reason, after Landlord has deposited the same collection. Tenant agrees that such charges are necessary and reasonable in light of the expenses and loss of income caused by such returned check. In such event, Tenant will pay, within 24 hours of having received notice of the return of a check, the following amounts: the amount of such returned check; the $25.00 charge for the return of such check; and any late charge which may be then due as the result of the payment represented by such check, not having been made due to the return of such check. Such amounts will be paid by means of cashier's check or wire transfer. - 4.4 Acceptance of Partial Payment. Landlord may accept any partial payment check with any conditional endorsement without prejudice to his right to recover the balance remaining due, or to pursue any other remedy available under this Lease. The acceptance of such check with any notations or endorsements thereon shall not constitute a modification to any of the terms of this Lease.. 4.5 Contesting Tax Assessments. Tenant may in good faith, in lieu of paying such real property taxes and assessments as they come due and payable, by appropriate proceedings, contest their validity. Pending such contest, Tenant shall not be deemed in default under this Lease because of such nonpayment if: (a) prior to delinquency of the asserted tax or assessment, (i) Tenant furnishes Landlord an indemnity bond secured by a deposit in cash or other security reasonably acceptable to Landlord, or with a surety reasonably acceptable to Landlord, in the amount of the tax or assessment being contested by Tenant or (ii) Tenant complies with any procedure allowed by the laws of the State of Colorado in the case of tax contests for depositing cash or other security with the registry of a court or with the taxing appropriate authority pending a contest of such taxes; and (b) Tenant promptly pays any amount adjudged by a court of competent jurisdiction to be due, with all costs, penalties and interest thereon when such judgment becomes final. 4.6 Security Deposit. Landlord hereby acknowledges that the Security Deposit described in Article One hereof to be received and held by Landlord, will be held by Landlord without interest as security for the performance by Tenant of Tenant's covenants and obligations under this Lease, it being expressly understood that such Security Deposit is not an advance payment of rental or a measure of Landlord's damages in case of default by Tenant. If Tenant is not then in default upon the termination of this Lease for any reason, any remaining balance of such Security Deposit shall be returned by Landlord to Tenant following the termination of this Lease. The Security Deposit may be assigned and transferred by Landlord to any successor in interest of Landlord; and, upon acknowledgement by such successor of receipt of such Security Deposit and its express assumption of the obligation to account to Tenant for such Security Deposit in accordance with the terms of this Lease, Landlord shall thereby be discharged of any further obligation relating thereto. 5 Lease Agreement ****** ARTICLE FIVE USE OF PREMISES 5.1 Use of Premises. The Leased Premises may be used and occupied for the purpose or purposes specified in Section 1.1. Tenant shall use and occupy the Leased Premises in a careful, safe and proper manner and shall keep the same in a clean and safe condition. 5.2 Limitations on Tenant's Use. Tenant shall not use or permit the use of the Leased Premises in violation of any Governmental Requirement. Tenant shall not use or occupy, or permit anything to be done in or about the Leased Premises, or any party thereof, that would cause, or be likely to cause, structural injury or damage to the Leased Premises, or any party thereof. 5.3 Permits, Licenses and Compliance with Governmental Requirements. Provided Landlord has constructed Landlord's Improvements in a good and workmanlike manner in accordance with all Governmental Requirements, Tenant shall procure at its own expense any permits and licenses (including, but not limited to, a Certificate of Occupancy) required for the transaction of business in the Leased Premises and shall otherwise comply with all applicable laws, ordinances and governmental regulations, including, but not limited to maintaining compliance with the American with Disabilities Act. ARTICLE SIX SIGNS 6.1 Tenant's Sign. Tenant may, at Tenant's expense, erect, install and maintain signs on or about the Leased Premises, or on the exterior of any buildings located on the Leased Premises, the number, size and design of which shall be in the sole discretion of Tenant so long as they comply with Governmental Requirements. ARTICLE SEVEN UTILITIES (a) 7.1 Utility Facilities. Landlord shall provide the mains, conduits and other facilities necessary to supply water, gas, electricity, telephone service and septic sewage service to the Leased Premises. Tenant shall pay at its sole cost the sums required to have such services connected to the Leased Premises, including any security deposits, and shall have all such accounts placed in Tenant's name prior to occupancy of the Leased Premises. Upon such time as Landlord is required to connect the property adjoining the Leased Premises to a public sewer system, Landlord, at Landlord's sole cost and expense, will take such action and construct such improvements as are required to connect the Leased Premises to such public sewer system. 7.2 Utility Charges. Tenant shall promptly pay all charges and deposits for electricity, water, gas, telephone service, sewage service and other utilities furnished to the Leased Premises. 7.3 Interruptions in Service; No Liability. Unless caused by the actions of Landlord, Landlord shall not be liable for any interruption whatsoever in utility services not furnished by it, 6 Lease Agreement ****** nor for interruptions in utility services fuuiished by it which are due to fire, accident, strikes, acts of God or other causes beyond the control of Landlord or in order to make alterations, repairs or improvements. ARTICLE EIGHT PERSONAL PROPERTY AND PERSONAL PROPERTY TAXES 8.1 Personal Property Taxes; Tenant's Obligation., Tenant shall be liable for all taxes levied against personal property and trade fixtures placed by Tenant in the Leased Premises. If any such taxes for which Tenant is liable are levied against landlord or Landlord's property and if Landlord elects to pay the same or if the assessed value of Landlord's property is increased by inclusion of personal property and trade fixtures placed by Tenant in the Leased Premises and Landlord elects to pay the taxes based on such increase, Tenant shall pay to Landlord upon demand that part of such taxes for which the Tenant is primarily liable hereunder. ARTICLE NINE CONSTRUCTION, MAINTENANCE. REPAIRS AND ALTERATIONS 9.1 Construction of Landlord Improvements; Access of Tenant to Leased Premises during Construction Period. Landlord shall commence the construction of the Landlord Improvements on the Start Date and thereafter use reasonable diligence in the prosecution of the completion of Landlord's Improvements. Landlord shall complete the Landlord Improvements on or before March 31, 2006. Landlord shall, at the request of Tenant, provide Tenant with reasonable access to the Leased Premises during the Landlord Construction Period in order for Tenant to initiate and construct the Tenant Improvements, provided that Tenant coordinates its construction activities with Landlord's contractor so as not to unreasonably interfere with the construction of Landlord's Improvements. 9.2 Maintenance Obligations of the Parties. Landlord shall maintain and keep in good repair: a. Structure. The foundation, roof and support structure of the Leased Premises; and b. Utility Facilities. Sewage, gas, electric and water facilities serving the Leased Premises from the property line of the entire premises to the meter box, in the event such utilities are separately metered; and from the property line of the entire premises to the point of their entry into the Leased Premises in the event such utilities are not separately metered. Provided, however, (i) Landlord shall not have to pay for any repairs caused by the willful or negligent act of Tenant, its agents or employees or caused by roof repairs required as a result of work on the air conditioning equipment and (ii) Landlord will have no obligation to make any repairs until it receives written notice from Tenant of any damage. Tenant shall maintain and keep all of the remainder of the Leased Premises in good repair. Tenant shall further make all 7 Lease Agreement ****** other repairs to the Leased Premises made necessary by Tenant's failure to comply with its obligations under this Article. Tenant is responsible for all pest control efforts within the Leased Premises. However, Tenant is not required to make capital improvements. Tenant's responsibility of "maintenance and repair" is limited to maintaining the condition of the property, including improvements and appurtenances, as existed upon the Commencement Date. In case any dispute shall arise at any time between Landlord and Tenant as to the standard of care and maintenance of the Property, such dispute shall be determined by arbitration as provided for in this Lease; provided that if the requirement for making repairs or replacements is imposed by any Governmental Authority or the holder of any mortgage to which this Lease is subordinate, then such requirement for repairs or replacements shall be complied with by Tenant and shall not be considered an arbitrable dispute. Tenant, however, shall have the right to dispute or contest the validity, application or reasonableness of any such requirement and Landlord shall afford to Tenant reasonable cooperation in this connection. 9.3 Tenant Alterations; Requirements. Other than for Tenant's Improvements referenced in Article 1.1(v), Tenant shall not snake alterations, additions or improvements to the Leased Premises without the prior consent of Landlord, except for unattached movable trade fixtures, which may be installed without drilling, cutting or otherwise defacing the Leased Premises. All alterations, additions and improvements which may be made or installed by either party hereto upon the Leased Premise shall remain upon and be surrendered with the Leased Premises and become the property of Landlord at the termination of this Lease unless Landlord requests their removal, in which event Tenant shall remove the same and restore the premises to their original condition at Tenant's expense. Further, the right of removal granted herein shall not extend to any item which is a part of any building system, which is incorporated, in whole or in part, into the building itself, including, but not limited to, electrical, heating and air conditioning and communications, regardless of whether the same is classified as fixtures, machinery or equipment, removable or otherwise. 9.4 Governmental Requirements; Compliance. Landlord and Tenant shall conform to, and comply with, all Governmental Requirements in the performance of their work and construction of any alterations and/or improvements. 9.5 Right of Entry and Inspection. Landlord (and any mortgage or Deed of Trust beneficiary as to the Leased Premises) will have a right to enter the Leased Premises at any reasonable time to inspect the condition thereof, to make necessary repairs and improvements, or to repair or maintain pipes, wires, and other facilities serving its nearby property and for other lawful purposes; provided however, such right shall not be exercised in a manner which would unreasonably interfere with Tenant's conduct of its business at the Leased Premises. 9.6 Liens. Should any mechanic's liens or other liens or affidavits claiming liens being filed against the Leased Premises or any portion thereof or interest therein for any reason whatsoever incident to the act or omissions of Tenant or any contractor of Tenant or any such contractor's subcontractor or any laborer performing labor or materialman furnishing materials at or for the Leased Premises, Tenant shall cause the same to be canceled and discharged of record by payment, bonding or otherwise within fifteen (15) days after notice by Landlord, or at such earlier time as is necessary to prevent the foreclosure thereof. 8 Lease Agreement ARTICLE TEN INDEMNITY AND INSURANCE 10.1 Landlord's Limitation of Liability for Acts of Tenant, etc. Landlord shall not be liable to Tenant or to Tenant's employees, agents, guests or invitees or to any other person whosoever, for any injury to persons or damage to property on or about the Leased Premises caused by the negligence or misconduct of Tenant, its employees, subtenants, licensees and concessionaires or of any other person entering the Property under express or implied invitation of Tenant or arising out of the use of the Leased Premises by Tenant and the -conduct of its business therein or arising out of any breach or default by Tenant in the performance of its obligations hereunder, and Tenant hereby agrees to indemnify and hold Landlord harmless from any damages or expenses arising out of or caused by a burglary, theft or other illegal acts performed in the Leased Premises. 10.2 Tenant's Limitation of Liability for Acts of Landlord, etc. Tenant shall not be liable to Landlord or to Landlord's employees, agents, guests or invitees or to any other person whosoever, for any injury to persons or damage to property on or about the Leased Premises caused by the negligence or misconduct of Landlord, its employees, licensees and concessionaires or of any other person entering the Property under express or implied invitation of Landlord or arising out of the use of the Leased Premises by Landlord and the conduct of its business therein or arising out of any breach or default by Landlord in the performance of its obligations hereunder. 10.3 Liability Insurance; Tenant's Obligation. Tenant shall procure and maintain throughout the term of this Lease a policy or policies of insurance, at its sole cost and expense, insuring Tenant and Landlord against any and all liability for injury to or death to a person or persons, and for damage to or destruction of property occasioned by or arising out of or in connection with the use or occupancy of the Leased Premises, or by the condition of the Leased Premises, the Jimits of such policy or policies to be in an amount not less than $500,000.00 for an individual claim from any single or specific cause and $1,000,000.00 combined single limit bodily injury and property damage. 10.4 Limitations of Liability Resulting from Accident or Occurrence. Landlord and Landlord's agents and employees shall not be liable to Tenant for any injury to person or damage to property sustained by Tenant resulting from any accident or occurrence in the Leased Premises or on the Property including, but not limited to, injury or damage, including, but not limited to consequential damage, caused by the Leased Premises or other portions of the Property becoming out of repair or by defect in or failure of equipment, pipes, or wiring, or by broken glass, or the breaking up of drains or by gas, water, steam, electricity or oil leaking, escaping or flowing into the Leased Premises (except where due to landlord's willful conduct or gross negligence or Landlord's negligent failure to make repairs required to be made by Landlord hereunder, after the expiration of a reasonable time after written notice to Landlord of the need for such repairs. As used in the Article 10.4, the term "Landlord" shall include Landlord's employees, licensees and concessionaires or of any other person entering the Property under express or implied invitation of Landlord. 9 Lease Agreement ****** 10.5 Fire and Extended Coverage Insurance. Tenant shall obtain and maintain, at Tenant's expense, a policy or policies of insurance generally termed in the insurance trade as "fire and extended coverage" policies (the "Casualty Insurance Policy", insuring against all losses and/or damages to any and all building and improvements upon the Leased Premises, resulting from fire, windstorm or other casualty, in an amount not less than the full insurable value thereof, and in an amount, which will be sufficient to prevent any party in interest from being or becoming a co-insurer on any part of the risk. All such Casualty Insurance Policies shall include the name of Landlord as one of the parties insured thereby and shall insure both Landlord and Tenant as their respective interests may appear. 10.6 Waiver of Subrogation. All Casualty Insurance Policies and broiler insurance carried either by Landlord or Tenant covering losses arising out of the destruction or damage to the Leased Premises or its contents or to together portions of the Property shall, to the extent Tenant's insurance carrier will consent to the same, provide for a waiver of rights of subrogation against Landlord and Tenant on the part of the insurance carrier and to the extent, but only to the extent that such insurance shall require a release of the claim of the insured against the other party for losses arising out of the hazard covered thereby such claims shall be deemed released and provided that such waiver shall not operate in any case where the effect is to invalidate or increase the cost of such insurance coverage (provided, that in the case of increased cost, hereby keeping such waiver in full force and effect). 10.7 Certificates of Insurance. Tenant shall deliver to Landlord certificates of all insurance required hereunder. All insurance policies required of Tenant hereunder shall contain a written obligation on the part of the insurance company to notify Landlord at least ten (10) days prior to cancellation of such insurance. If Tenant shall fail to comply with any of the requirements herein contained relating to insurance, Landlord may obtain such insurance and Tenant shall pay to Landlord on demand as additional rent hereunder the premium cost hereof. 10.8 Mutual Releases of Covered Claims. Landlord and Tenant and all parties claiming under them mutually release and discharge each other from all claims and liabilities arising from or caused by any casualty or hazard covered or required hereunder to be covered in whole or in part by insurance on the Leased Premises or in connection with property on or activities conducted on the Leased Premises, and waive any right of subrogation which might otherwise exist in or accrue to any person on account thereof, provided that such release shall not operate in any case where: (i) the effect is to invalidate or increase the cost of such insurance coverage (provided, that in the case of increased cost, hereby keeping such release and waiver in full force and effect): or (ii) such insurance has not, in fact, been obtained. ARTICLE ELEVEN CASUALTY DAMAGE 11.1 Notice of Casualty. Tenant shall give immediate written notice to Landlord of any damage caused to the Leased Premises by fire or other casualty. 10 Lease Agreement 11.2 Payment of Insurance Proceeds. Subject to the right of Tenant to require the use the proceeds of Casualty Insurance Policy or Policies payable as the result of any casualty to the buildings and improvements located on the Leased Premises (other than proceeds paid as the result of the damage or destruction to Tenant improvements), in order to restore, repair and reconstruct such buildings and improvements and the obligations of Landlords to restore, repair and reconstruct such buildings and improvements using such insurance proceeds, such proceeds of insurance shall be payable to Landlord. 11.3 Casualty; Repair of Premises. In the event that the Leased Premises shall be damaged or destroyed by fire or other casualty insurable under the Casualty Insurance Policy or Policies covering the Leased Premises and Landlord does not elect to terminate this Lease as herein provide, Landlords, to the extent the proceeds of such Casualty Insurance Policy or Policies are paid to Landlord, shall proceed with reasonable diligence and at its sole cost and expense to rebuild and repair the Leased Premises. If the building in which the Leased Premises are located shall be damaged or destroyed (i) by fire or other casualty so as to render untenantable more than fifty percent (50%) of the floor area of the entire building in which the Leased Premises are located, (ii) by a cause not insurable under the Casualty Insurance Policy or Policies, (iii) in such a manner that the proceeds of insurance are insufficient to rebuild and repair the Leased Premises to its condition existing immediately prior to the casualty causing such damage and/or destruction, then Landlord may elect to either terminate this Lease or to proceed to rebuild and repair the Leased Premises. Landlord shall give written notice to Tenant of such election within sixty (60) days after notice of the occurrence of such casualty and if it elects to rebuild and repair, shall proceed to do so with reasonable diligence and at its sole cost and expense. If Landlord elects to terminate the Lease, Tenant may avoid such termination by agreeing to pay any sums beyond the proceeds of insurance available for reconstruction and, in such event, Tenant may avoid such termination by agreeing to pay any sums beyond the proceeds of insurance available for reconstruction and, in such event, Tenant may rebuild the destroyed improvements and Landlord shall deliver the insurance proceeds to Tenant for such purpose on a monthly basis, upon receipt, of reasonable proof of the incurring of expenses by Tenant in the reconstruction of the damaged or destroyed improvements and the payment therefore by Tenant. 1.1.4 Landlord's Obligation to Rebuild and Repair; Limitations. Landlord's obligation to rebuild and repair under this Article Eleven shall be limited to restoring the Teased Premises to substantially the condition in which the same existed prior to the casualty, and Tenant agrees that promptly after completion of such work by Landlord, it will proceed with reasonable diligence and at its sole cost and expense to rebuild, repair and restore all Tenant Improvements to substantially the condition in which the same existed prior to casualty. 11.5 Continuance of Lease; Abatement of Base Rent. During any period of reconstruction or repair of the Leased Premises, this Lease shall continue in full force and effect except that the Base Rent shall be abated for the length of time necessary for the reconstruction or repairs. If less than all of the building located on the Leased Premises are damaged or destroyed and Tenant is able to continue its business operations, the Base Rent shall be abated in the same proportion by which Tenant's business operations are interrupted or curtailed due to such casualty. 11 Lease Agreement ARTICLE TWELVE EMINENT DOMAIN 12.1 Condemnation of Significant Portion of Leased Premises; Termination of Lease. If more than twenty percent (20%) of the floor area of any buildings located on the Leased Premises should be taken for any public or quasi -public use under any governmental law, ordinance or regulation or by right of eminent domain or by private purchase in lieu thereof, if more than twenty percent (20%) of any parking area of the Leased Premises should be taken for any public or quasi -public use under any governmental law, ordinance or regulation or by right of eminent domain or by private purchase in lieu thereof, or if due to the area of the Leased Premises taken, Tenant's activities are likely to be materially adversely affected, any of such events being deemed a "Significant Condemnation", then, at the option of Tenant, Tenant may terminate this Lease and the Base Rent shall be abated during the unexpired portion of this Lease, effective on the date physical possession is taken by the condemning authority. 12.2 Other Condemnation. If any of the Leased Premises should be taken for any public or quasi -public use under any governmental law, ordinance or regulation or by right of eminent domain, or by private purchase in lieu thereof, which is other than a Significant Condemnation, this Lease shall not terminate. However, the minimum guaranteed rental (but not percentage or additional rental) payable hereunder during the unexpired portion of this Lease shall be reduced in proportion to the area taken compared to the entire Leased Premises, effective on the date physical possession is taken by the condemning authority and Landlord shall make all necessary repairs or alterations within the scope of Landlord's Work necessary to make the Leased Premises and any building and improvement located thereon, an architectural whole. 12.3 Election to Terminate. All compensations awarded for any taking (or the proceeds of private sale in lieu thereof) whether for the whole or a part of the Leased Premises shall be the property of Landlord, whether such award is compensation for damages to Landlord's or Tenant's interest in the Leased Premises, and Tenant hereby assigns all of its interest in any such award to landlord; provided, however, Landlord shall have no interest in any award made to Tenant for loss of business or for the taking of Tenant's fixtures and other property within the Leased Premises if a separate award for such items is allowable by law. ARTICLE THIRTEEN DEFAULT BY TENANT AND SECURITY DEPOSIT 13.1 Events of Default. Any of the following events shall be deemed to be "Events of Default" by Tenant under this Lease: a. Failure to Pay Base Rent after Notice. Tenant shall fail to pay any installment of Base Rent or other monetary sum due within ten (10) days after having received notice from Landlord that the payment of such Base Rent or other monetary sum is past due; b. Failure to Comply with Terms after Notice. Tenant shall fail to comply with any term, provision, or covenant of this Lease, other than the payment of Base Rent, and shall not cure such failure within twenty (20) after written notice thereof to Tenant; 12 Lease Agreement ****** c. Insolvency of Tenant. Tenant shall become insolvent, or shall make a transfer in fraud or creditors, or shall make an assignment for the benefit of creditors; d. Petition in Bankruptcy. Tenant shall file a petition under any section or chapter of the National Bankruptcy Act, as amended, or under any similar law or statute of the United States or any state thereof; or Tenant shall be adjudged bankruptcy or insolvent in proceedings filed against Tenant thereunder; or e. Appointment of Receiver. A receiver or trustee shall be appointed for all or substantially all of the assets of Tenant. Notwithstanding the provisions of Article 14.1(b) above, if due to the nature of the noncompliance, such noncompliance can not be cured within twenty (20) days after written notice, despite Tenant's diligent efforts to cure such noncompliance, such noncompliance shall not be an Event of Default if Tenant commences its efforts to cure such noncompliance within such twenty (20) day period. and thereafter diligently continues its efforts to cure such noncompliance until such noncompliance is cured: 13.2 Remedies Upon Default. Upon the occurrence of any of such listed Events of Default, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever: a. Terminate Lease. Terminate this Lease, in which event Tenant shall immediately surrender the Leased Premises to Landlord and Tenant agrees to pay the Landlord on demand the amount of all loss and damage which Landlord may suffer by reason of such termination whether through inability to re -let the Lensed Premises on satisfactory terms or otherwise. b. Take Possession and Re -let of Leased Premises. Enter upon and take possession of the Leased Premises and expel or remove Tenant any other person who may be occupying said Leased Premises or any part thereof, and re -let the Leased Premises and receive the rent therefore; and Tenant agrees to pay to Landlord on demand any deficiency that may arise by reason of such re -letting. c. Enter into Possession; Cure Tenant's Default; Store and Dispose of Property. Enter upon the Leased Premises, and do whatever Tenant is obligated to do under the terms of this Lease; and Tenant agrees to reimburse Landlord on demand for any expenses which Landlord may incur in this effecting compliance with Tenant's obligations under this Lease, and Tenant further agrees that Landlord shall not be liable for any damages resulting to the Tenants from such action, whether caused by the negligence of Landlord or otherwise. Upon the re- entering of the Leased Premises, Landlord may remove all or any part of the personal property of Tenant remaining on the Leased Premises and store the same at Tenant's expense. If said Tenant does not claim personal property remaining on the Leased Premises within sixty (60) days after such entry, title to the same shall vest in Landlord. Tenant shall be obligated to return all keys to the Leased Premises to Landlord upon Landlord's re-entering of said Leased Premises. 13. Lease Agreement ****** Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies herein provided or any other remedies provided or allowed by law, nor shall pursuit of any of the other remedies herein provided constitute a forfeiture or waiver of any rent due to Landlord hereunder or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants herein contains. Forbearance by Landlord to enforce one or more of the remedies herein provided upon an Event of Default shall not be deemed or construed to constitute a waiver of such default. ARTICLE FOURTEEN LANDLORD'S LIEN 14.1 Security Agreement. This instrument shall constitute a security agreement under the Uniform Commercial Code of the State of Colorado which shall secure the liens of the Landlord herein retained which shall at all times be a valid lien for all rentals and other sums of money becoming due hereunder from Tenant, upon all goods, wares, equipment, fixtures, furniture, and other personal property of Tenant situated on the Leased Premises, except as provided in Article 14.2 herein below, and such property shall not be removed therefrom without the consent of Landlord until all arrearages in rent as well as any and all other sums of money then due to Landlord hereunder shall first have been paid and discharged. 14.2 Exemption from Landlord's Lien. Notwithstanding the provisions of Article 14.1 above, certain property of Tenant located on the Leased Premises as described below (the "Exempt Property"), shall be exempt from provisions of Article 14.1, any statutory landlord's lien and the Landlord's Lien granted pursuant to such Article 14.1. The Exempt Property is as follows: a. All of Tenant's trade fixtures, copiers, telephone systems, supplies, maintenance equipment, computers and other data processing equipment b. All of Tenant's parts inventory and inventory of motor vehicles, trucks, trailers and heavy equipment; c. All other goods, equipment and inventory held by Tenant (whether at the Leased Premises or elsewhere) for sale, lease, loan or demonstration in the ordinary course of business of Tenant's business; d. All property of Tenant pledged as security for any purchase money financing; e. All property of Tenant pledged as security for any financing obtained in the operation of Tenant's business; and f. All property of Tenant held at any location other than the Leased Premises. 14 Lease Agreement ****** Tenant waives any claim of any landlord's lien, contractual and/or statutory, against the Exempt Property listed above and agrees, upon request of Tenant, to execute a written acknowledgement of the exemption of any of the foregoing Exempt Property from such landlord liens. 14.2 Remedies Under Code. In addition to the remedies granted by law, Landlord shall have and may exercise with respect to said collateral all of the rights, remedies and powers of a secured party under the Uniform Commercial Code including, without limitation, the right and power to sell, at public or private sale or sales, or otherwise dispose of, lease or utilize, the collateral and any part or parts thereof in any manner authorized or permitted under said code upon default by Tenant. At Landlord's request, Tenant shall execute and deliver to Landlord a financing statement appropriate for use under the Uniform Commercial Code ("the Code"), as such Code is enacted in the State in which the Leased Premises is located, or a signed counterpart of this agreement or the short form thereof may be used as such financing statement. ARTICLE FIFTEEN SUBORDINATION AND MORTGAGEE'S REQUIREMENTS 15.1 Subordination of Lease. Tenant accepts this Lease subject and subordinate to any mortgage presently existing upon the Leased Premises or upon the property and to any renewals and extensions thereof, but Tenant agrees that any mortgagee shall have the right at any time to subordinate this Lease to such mortgage on such terms and subject to such conditions as the mortgagee may deem appropriate in its discretion. Landlord is hereby irrevocably invested with full power and authority, if it so elects at any time, to subordinate this Lease to any mortgage hereafter placed upon the Leased Premises or upon Property, and Tenant agrees upon demand to execute such further instruments subordinating this Lease as landlord may request. Such subordination shall be upon the express condition that upon foreclosure, exercise of power of sale or other exercise of the mortgagee's rights, Tenant's possession of the Leased Premises shall not be disturbed so long as Tenant shall continue to perform all of the covenants and conditions of this Lease and that Tenant's obligations to perform such covenants and conditions shall not be in any way diminished thereby. 15.2 Mortgagor Certificates. In the event a mortgagee or prospective mortgagee should so require, Tenant shall deliver to Landlord, from time to time, for delivery to such mortgagee: a. Acknowledgment of Assignment of Rentals. An acknowledgement of the assignment of rentals and other sums due hereunder to the mortgagee and agreement to be bound thereby; b. Agreement for Notice to Mortgagee. An agreement requiring Tenant to advise the mortgagee of damage to or destruction of the Leased Premises by fire or other casualty requiring its reconstruction and/or requiring Tenant to give the mortgagee written notice of Landlord's default hereunder and to permit the lender to cure such default within a reasonable time after such notice before exercising any remedy Tenant might possess as a result of such default; 15 Lease Agreement c. Estoppel Letter. An acceptance or estoppel letter to be executed only upon the commencement of the lease term, accepting the premises as completed in accordance with the lease specifying that all conditions to the commencement of the lease term have been met, and that Landlord is not in default of its obligations thereunder, if such be the case, and containing such other information as are customarily contained in such acceptance or estoppel letters. 15.3 Certificate. In the event Landlord should so request, Tenant shall deliver to Landlord, from time to time, a statement in recordable form, certifying that: the Lease is unmodified and in full force and effect (or if there have been modifications, the Lease is in full force and effect as so modified); and, Landlord is not in default of its obligations thereunder, if such be the case. The statement shall contain such information as is customarily contained in such lease verification or estoppel letters and shall further stating the dates to which rent and other charges payable under the Lease have been paid. ARTICLE SIXTEEN ASSIGNMENT AND SUBLETTING 16.1 Right of Lease Assignment by Tenant. Tenant and Tenant's legal representatives or successors in interest by operation of law or otherwise, shall not have the right to assign or mortgage this Lease, or sublet the whole or any party of the Leased Premises or permit the Leased Premises or any part thereof to be used or occupied by others without the written consent of Landlord, which will not be unreasonably withheld. Notwithstanding the foregoing, Tenant shall be entitled to assign its interest in the Leased Premises under the Lease or sublet the Leased Premises, or any part thereof, to any other Affiliated Entity or Entities. 16.2 Liability of Tenant after Assignment Notwithstanding any such assignment, mortgage or sub -leasing of the Leased Premises or any portion thereof, Tenant shall remain fully liable for all Base Rent and other sums due under this Lease and the performance of all obligations of the Tenant provided for by this Lease. 16.3 Effect of Violation. Any violation of any provision of this Lease, whether by act or omission, by any assignee, subtenant or occupant, shall be deemed a violation of such provision by the Tenant, it being the intention and meaning of the parties hereto that the Tenant shall assume and be liable to the Landlord for any and all acts and omissions of any and all assignees, subtenants and occupants. ARTICLE SEVENTEEN NOTICES 17.1 Notices. All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, given by overnight delivery service, prepaid telex or telegram or by facsimile or other similar instantaneous electronic transmission device or deposited in the United States mail, certified or registered mail, postage prepaid, return receipt requested, as follows: 16 Lease Agreement a. IF TO I.,ANDLORD: Mailing Address: Western Equipment & Truck, Inc. 2055 1st Avenue Greeley, Colorado 80631 b. IF TO TENANT: Mailing Address: Rush Truck Centers of Colorado, Inc. c/o Rush Administrative Services, Inc. P.O. Box 34630 San Antonio, Texas 78265 Attention: Legal Department Facsimile Number: (830) 626-5307 Physical Address: Rush Truck Centers of Colorado, Inc. do Rush Administrative Services, Inc. 555 IH 35 South New Braunsfels, Texas 78130 Provided that any party may change its address for notice by giving the other party written notice of such change. Any notice given under this Article 17.1 shall be effective when received at the address for notice for the party to which the notice is given. ARTICLE EIGHTEEN ENVIRONMENTAL COVENANTS 18.1 Compliance with Environmental Laws. Tenant represents, warrants, and covenants to Landlord throughout the term, that Tenant is and agrees to remain in compliance with all applicable Environmental laws with respect to Tenant's use and occupancy of the Leased Premises. Tenant agrees to cause all of its employees, agents, contractors, sub -Tenants, assignees, and any other persons occupying or present on the Leased Premises ("Occupants") to comply with all Environmental laws application to their activities in and around the Leased Premises. 18.2 Use of Hazardous Substances; Remedial Activities. Specifically, Tenant shall not store, keep or use Hazardous Substances on the premises except those substances, which are used in the operation of Tenant's business. Should Tenant cause or allow the Discharge of Hazardous 17 Lease Agreement Substances during the term of this lease, Tenant shall conduct Remedial Activities, at Tenant's cost, as required to satisfy all federal, state and local environmental regulatory agencies. If any Remedial Activity is required of Tenant due to the provisions of this Lease, Tenant shall promptly cause such Remedial Activity to be performed. 18.3 Tenant's Obligation of Environmental Indemnification. Tenant shall indemnify, defend and hold Landlords harmless from and against any loss, cost, expense, claim or liability arising out of or in connection with any Remedial Activity which is required due to the existence or discharge of Hazardous Substances, which occurs on or after the Effective Date of this Lease and during the period of this Lease and/or Tenant's occupancy of the Leased Premises; provided such existence or discharge is not due to migration of such Hazardous Substances from property other than the Leased Premises or due to the acts of Landlord or others, which occurred prior to the Effective Date of this Lease. Tenant shall indemnify, defend and hold Landlord harmless from and against any loss, cost, expense, claim or liability arising out of or in connection of any claims of third parties for loss, expense or damage arising out of or in connection with the existence or discharge of any Hazardous Substances, which occurs during the term of the Lease and/or Tenant's occupancy of the Leased Premises; provided such existence or discharge is not due to migration of such Hazardous Substances from property other than the Leased Premises or due to the acts of Landlord or others, which occurred prior to the Effective Date of this Lease. Further, Tenant indemnifies Landlord against any penalties or costs assessed by any state or federal regulatory agency against Landlord for Discharges caused or permitted by Tenant, or any of Tenant's employees, agents, licensees or invitees and any losses, damages, or costs incurred by Landlord as the result of such discharges. 18.4 Landlord's Obligation of Environmental Indemnification. Landlord shall indemnify, defend and hold harmless from and against any loss, cost, expense, claim or liability arising out of or in connection with any Remedial Activity which is required due to the existence or discharge of Hazardous Substances or any claim, lawsuit or other action, which is brought against Tenant, relating to any use, storage, discharge or existence of any Hazardous Substances, which occurred prior to the Effective Date of this Lease and Tenant's occupancy of the Leased Premises or which is due to migration of such Hazardous Substances from property other than the Leased Premises. Landlord shall indemnify, defend and hold Tenant harmless from and against any loss, cost, expense, claim or liability arising out of or in connection any claims of third parties for loss, expense or damage arising out of or in connection with the existence or discharge of any Hazardous Substances, which occurred prior to the Effective Date of the Lease and Tenant's occupancy of the Leased Premises or which is due to migration of such Hazardous Substances from property other than the Leased Premises. Further, Landlord indemnifies Tenant against any penalties or costs assessed by any state or federal regulatory agency against Tenant for Discharges caused or permitted by Landlord, or any of Tenant's employees, agents, licensees or invitees, or which occurred prior to the Effective Date of this Lease, and against any losses, damages, or costs incurred by Landlord as the result of such discharges. 18 Lease Agreement ****** 18.5 Covered Costs. The costs incurred, which are covered by the indemnity obligations set forth in this Article include, but are not limited to, any attorney's fees or other costs incurred by a party in investigating and/or remediating any discharges or investigating and/or defending against any claims, actions or proceedings asserted against such party or in which party is joined as a party, which relate to such discharges. ARTICLE NINETEEN RIGHT OF EARLY TERMINATION 19.1 Right of Early Termination. Notwithstanding any other provision of this Lease, should. the Swift Processing Plat, located at 800 North Eighth Avenue, Greeley Colorado 80632, formerly the Monfort Packing Plant, close or substantially reduce its operations for whatever reason during the Initial or any Renewal Term of this Lease, Tenant shall have the option, , at any time thereafter, to terminate this Lease, provided Tenant is not then in default of its obligations as Tenant under this Lease , by giving Landlord at least ninety (90) days written notice of the date upon which this Lease shall terminate (the "Early Termination Date"), in which event this Lease shall terminate on the Early Termination Date, without further liability upon the parties other than for return of Tenant's Security Deposit, to the extent Tenant is entitled to a return of the same, the payment of any monetary obligations which have become due prior to such Early Termination and the obligations of indemnity of the parties or other obligations provided for in this Lease, which would survive the termination of this Lease by the normal expiration of the term of the same. ARTICLE TWENTY MISCELLANEOUS PROVISIONS 20.1 Holding Over. If Tenant does not vacate the Premises following termination of this Lease, Tenant will become a tenant at will and must vacate the Premises on receipt of notice from Landlords. It is agreed and understood that any holding over by Tenant of the Leased Premises after the expiration of this Lease shall operate and be construed as a tenancy from month to month (the "Holdover Period") at a rental equal to 150% of the Minimum Monthly Base Rent herein provided, plus the amount due under Article 4.2 herein, as such rental is then adjusted as herein provided (the "Holdover Rental"), and subject to any Percentage Rent. The accrual or payment of such Holdover Rental shall not provide Tenant with any rights of occupancy or any other rights under the Lease during the Holdover Period. Tenant shall remain in the possession of the Leased Premises solely at the sufferance of Landlord and Landlord shall be entitled to pursue all of its remedies against Tenant during such Holdover Period including, but not limited to, seeking Tenant's eviction, notwithstanding the accrual and/or payment of such Holdover Rental. 20.2 Expenses of Negotiation. Whether or not the transactions contemplated hereby are consummated, each of the parties will pay its own costs and expenses incurred in the negotiation of this Lease. 20.3 Right of Entry. Landlord shall have the right to enter upon the Leased Premises at all reasonable hours for the purpose of inspecting the same, or of making repairs to the Leased 19 Lease Agreement - Premises, or of making repairs, alterations, or additions to adjacent premises. Landlord shall not be liable to Tenant for any expense, loss, or damage from any such entry upon the Leased Premises. 20.4 Late Charge. Tenant shall be liable for, and Landlord may collect a late charge of five cents ($0.05) for each dollar of Minimum Monthly Base Rent unpaid by the eleventh (11th) day of each month, such charge to be addition to and not in lieu of any other remedy of Landlord hereunder. Tenant agrees that such charges are necessary and reasonable in light of the expenses and loss of income caused by late payments. 20.5 Force Majure. Whenever a period of time is herein provided for Landlord or Tenant to do or perform any act or thing, neither Landlord nor Tenant shall be liable or responsible for, and there shall be excluded from the computation of such periods of time any delays due to strikes, riots, acts of God, shortages of labor or materials, national emergency, acts of public enemy, governmental restrictions, laws, or regulations, or any other cause or causes, whether similar or dissimilar to those enumerated, beyond Landlord's or Tenant's reasonable control. The foregoing does not include a lack of financial resources, regardless of the cause of the same, and regardless of whether such lack of financial resources was, or was not, in the control of the party claiming an excusable delay due to the provisions of this Article 20.5. 20.6 No Joint Venture. Nothing herein contained shall be deemed or construed by the parties hereto, nor by any third party, ascreating the relationship of principal an agent or of partnership or of joint venture between the parties hereto, it being understood and agreed that neither the method of computation of rent, nor any other provision contained herein, nor any of the acts of the parties hereto, shall be deemed to create any relationship between the parties hereto other than that of Landlord and Tenant. 20.7 No Waiver of Subsequent Breach. One or more waivers of any covenant, tern or condition of this Lease shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by the other party requiring such consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent similar act. 20.8 Authority to Execute Lease. Landlord has full authority to assign this Lease to any person or entity if such person or entity assumes all of Landlord's obligations under this Lease. In the event of such assignment, Tenant will continue to be fully liable under this Lease. 20.9 Gender; Number. Whenever herein the singular number is used, the same shall include the plural, and the neuter gender shall include the feminine and masculine genders. 20.10 Effect of Invalid Provisions. If any clause or provision of this Lease is illegal, invalid, or unenforceable under present or future laws effective during the term of this Lease, then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby, and the parties hereby declare that this Lease would have been entered into without such unenforceable portion. 20 Lease Agreement 20.11 Limitation on Alteration, Change or Amendment to Lease. This Lease may not be altered, changed, or amended, except by an instrument in writing signed by all parties hereto. The terms, provisions, covenants and conditions contained in this Lease shall apply to, inure to the benefit of, and be binding upon the parties hereto, and upon their respective heirs, successors in interest and legal representatives, except as otherwise herein expressly provided. 20.12 Captions. The captions used in this Lease are for convenience only and do not in any way limit or amplify the terms and provisions thereof. 20.13 Fees and Expenses of Actions. If any action at law or in equity, I including an action for declaratory relief is brought to enforce or interpret the terms of this Lease Agreement through probate, bankruptcy, receivership or other judicial proceeding, the prevailing party shall be entitled to recover reasonable attorney's fees, costs and necessary disbursements incurred in the investigation, preparation, and pursuit of such prevailing party's action, in addition to any other relief to which it may be otherwise entitled at law or hereunder. 20.14 Other Documents and Action. Each party shall, on demand, execute or obtain such other documents or instruments and corrective filings or instruments and use all commercially reasonable efforts to do or cause such other things as may be reasonably necessary or desirable to effect the provisions and purposes of this Lease Agreement. 20.15 Advertisement of Premises. During the last 120 days of any term, Landlord may place a sign on the Premise advertising the Leased Premises for rent or sale. 20.16 Rule of Construction. Each party hereto acknowledges that it has received, reviewed and been involved in the drafting of this Lease and that normal rules of construction, to the effect that ambiguities are to be resolved against the drafting party, shall not apply. 20.17 Schedules, Addenda, Riders and Exhibits. All schedules, addenda, riders and exhibits attached hereto shall be a part of this Lease for all purposes. Schedules, addenda, riders and exhibits shall be changed from time to time as the parties may agree. When schedules addenda, riders and exhibits are changed, they shall be redrafted in accordance with agreed changes, dated as of the effective date of such change and signed by the parties. Copies of changed schedules, addenda, riders and exhibits shall be furnished to each party and such changed schedules, addenda and exhibits shall become a part of this Lease for all purposes. Schedules, addenda, riders and exhibits, which have been changed, shall cease to be a part of this Lease, and the most recently dated schedule, addendum, rider and/or exhibit, signed by all parties, shall govern. 20.18 No Brokers, Agents, Fees or Commissions. Neither Landlord nor Tenant has engaged the services of a broker or other agent to negotiate the terms of this Lease, for which a fee or commission becomes payable as the result of the execution of this Lease, nor are any fees or commissions due or to become due as the result of the execution of this Lease. Landlords and Tenant each agree to indemnify and hold the other harmless from: any claim for any fee and/or commission due as the result of the execution of this Lease. 21 Lease Agreement 20.19 Memorandum of Lease. Upon the written request of Tenant, the parties shall execute a Memorandum of Lease, capable of being recorded in the real property records of the county in which the Leased Premises is located, sufficient to place any third parties on notice as to the existence of the Lease and its initial and renewal teuus. 20.20 Interest on Past Due Amounts. Any monetary amounts, which are owed by either party pursuant to a provision of this Lease, which are not paid when due shall bear interest from the date such amounts are due until the same are paid at the rate of five (5) percentage points over the then existing prime rate of the Frost National Bank as such prime rate is quoted by the Frost National Bank as its prime rate in effect at the time such amounts become due, not to exceed the maximum amount allowed by the law of the state in which the Leased Premises is located. ARTICLE 21 LANDLORD'S WARRANTIES AND REPRESENTATIONS 21.01. Warranties and Representations of Landlord. Landlord, in order to induce Tenant to enter into this Lease, has warranted and represented and hereby warrants and represents to Tenant that: (b) The Leased Premises will have the free and unencumbered ingress and egress access to Weld County Road 47; (c) All matters requiring state, county, or municipal, certification or other grants of authority or permission, are capable of being fulfilled by Landlord; (d) Landlord has the ability to obtain all necessary city or county permits for curb cuts, utilities, building permits and all other governmental permits necessary to construct and complete the Landlord Improvements; (e) The Leased Premises have sufficient current zoning, or Landlord will be able to secure any change in zoning, which would be required for Tenant's ability to comply with any Governmental Authority's zoning ordinances in Tenant use of the Leased Premises; and, (f) The following utilities, meeting all applicable Governmental Requirements, will be present at and available to the Leased Premises as of the Commencement Date: water, sanitary sewer or septic system, electricity and telephone. ARTICLE 22 TENANT CONTINGENCIES 22.01 Tenant's Contingencies. This Lease, and Tenant's obligations herein, are contingent upon the satisfaction of Tenant's Contingencies, which are as follows: (a) The Substantial Completion of the construction of the Landlord Improvements contemplated by this Lease in a good and workmanlike manner on or before March 31, 2006, subject to such extensions for force majeure, as are applicable to the contractors and suppliers in the contracts for construction of the Landlords Improvements. • 22 Lease Agreement (b) the delivery of possession of the Leased Premises to Tenant on the Commencement Date, free and clear of any uses and occupancies by any third party, except for contractors and others having reasonable access to the Leased Premises for punch list and remedial work. (c) The consent and approval to Tenant's use and occupancy of the Leased Premises after the Commencement Date by all applicable Governmental Authorities and the furnishing of utilities to the Leased Premises has not bee not denied. (d) All of Landlord's Warranties and Representations contained in. Article 21 herein above being true and correct as of the Start Date. 22.02 Failure to Satisfy Contingencies; Tenant's Options. Should any of the foregoing contingencies not be satisfied as of the Commencement Date, Tenant shall have the option to: (a) Extend the period within which to satisfy such contingencies; or, (b) Terminate this Lease and receive a return of all prepaid rents and security and other deposits without further liability to Tenant. If, after extending the Contingency Period, Tenant is still unable to secure the appropriate Governmental Approvals on or before the expiration of the Contingency Period, as extended, this Lease shall terminate and Tenant shall receive a return of all Tenant Security Deposits and prepaid rent. If any of the Tenant Contingencies described above have not been satisfied as of the Commencement Date, Tenant may either (i) waive the same in writing, in which event this Lease shall not terminate, but shall continue in full force and effect, without abatement of Rent or other consideration, or, (ii) terminate the Lease, in which event the Lease shall be of no further force and effect except that Landlord shall be liable to return all Security Deposits and prepaid Rent and other prepaid items shall be returned to Tenant. The acceptance by Tenant of the Conditional Use Permit secured by Landlord shall be deemed to have satisfied this Tenant Contingency. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] [SIGNATURES OF PARTIES TO THIS LEASE ON NEXT PAGE] 23 Lease Agreement ****** EXECUTED to be effective as of the Effective Date. LANDLORD: WESTERN EQUIPMENT & TRUCK, INC. By: aig Sp �w, Presid TENANT: RUSH TRUC ,,CENTELORADO, INC. By: r., Vice -President EXHIBITS S t HE ' ULES AND RIDERS The following Exhibits, Schedules and Rider are attached hereto and incorporated herein as an integral part of the foregoing Lease: 1. Exhibit A: Property Legal Description. 2. Exhibit B: Rental Rate Adjustment Rider 3. Schedule 1.1(u): Landlord's Improvements 4. Schedule 1.1(v): Tenant's Improvements 24 EXHIBIT A TO LEASE AGREEMENT DATED JUNE 30, 2005 BETWEEN WESTERN EQUIPMENT & TRUCIC, INC., LANDLORD, AND RUSH TRUCK CENTERS OF COLORADO, INC., TENANT LANDSCAPE/IRRIGATION PLAN HIGHWAY 34 TRANSPORTATION CENTER WELD COUNTY, COLORADO 0 F w • AutoCAD: SPARROW-0401—{AND—IRR 0 N O mz NW CORNER SECTION 24 END. 3 1/4 ALUM. CAP IN VONUUENT BOX L5 17808, 1892 14 N0006'03'W 40, AD/o TCN ACCESS N 1/16 CORYr7t SOCRON 23 t 24 WI 2 1/2' ALUM. CAP PLS 9644, 2001 G� RRICAT1ON WELL WATER METER V . BO' ROW I' 3D' ROW IF - 40' ROW RESERVED 588'28'09'0 1320,18' C2 AFDAN➢CHID GAS LINES NI6 33't8' I, 40 TABLE LINE BEARING LENGTH LI N72'43'10 53.13' L2 564'40'02'0 121,33' L3 583'12'04'0 170.11' L4 563'441 I'0 L5 $653302'E .21134' 131.36' LB N35'36'02'7 174.61' L7 54354'18'E 207,47' LB S3532'44'E 344.04' - DATE" r MVP 'W 8Y; r 1 HIGHWAY 34 L4 1030.31' CURY4 TAR1.E _ CURE LENS( RADIUS D!.TA TANDEM' CD Cl 144,50' 236.00' 3.j'13t5" 74.82' : N6E01'1rE C2 733.63' 1.600,00' 9'41'44" 127.22' Sg470'84'E 07 183.25' 275,04' 38'36'1? Off' , N75'08'52'E C4 96.67` 175,00' 3218'20' 50,59` 1{71'/5'12'0 05 56,67' 74,00' 46'41'21' 31.30' 367'5'86'0 ALUM AAD ASSOCIATIS, 428 N 2NO St, LA SALLE, CO 80646 Tat 0) 234-9 8642 FAX (7 Drawn by. IN_ Choked:...1584... Data: Appre EXHIBIT B TO LEASE AGREEMENT DATED JUNE 30, 2005 BETWEEN WESTERN EQUIPMENT & TRUCK, INC., LANDIORD, AN RUSH TRUCK CENTERS OF COLORADO, INC., TENANT EXHIBIT B FAIR MARKET RENTAL RATE RIDER This is a Fair Market Rental Rate Rider to that one certain Lease Agreement dated June 30, 2005, (the "Lease") between Western Equipment & Truck, Inc. ("Landlord") and Rnsh Truck Centers of Colorado, Inc. ("Tenant"). All words and phrases used herein shall have the same meaning and context and shall be given the same interpretation as such words and phrases are used in the Lease and all Defined Terms and Definitions set forth therein shall apply to such words and phrases when used herein. Further; as used herein, the term "Fair Market Rental Rate" shall mean the market rental rate for the time period such determination is being made for facilities compatible for use. as a full service truck dealership in the Greeley, Colorado metropolitan area (the "GMA") of comparable condition for space of equivalent quality, size, utility, and location. If there are not enough facilities available within the GMA, which are sufficiently compatible with the Leased Premises for comparison purposes, such determination shall be made using comparable facilities in other population centers in Colorado of comparable size with the GMA (a "CMA"). Such determination shall take into account all relevant factors, including, without limitation, the following matters: the credit standing of Tenant; the length of the term; expense stops; the fact that Landlord will experience no vacancy period and that Tenant will not suffer the costs and business interruption associated with moving its offices and negotiating a new lease; construction allowances and other tenant concessions that would be available to tenants comparable to Tenant in the GMA or CMA (such as moving expense allowance, free rent periods, and lease assumptions and take-over provisions, if any, but specifically excluding the value of improvements installed in the Premises at Tenant's cost), and whether adjustments are then being made in determining the rental rates for expansions and renewals in the GMA or CMA because of concessions being offered by Landlord to Tenant (or the lack thereof) for the Leased Premises (defined below) or Renewal Term in question and that Landlord will not incur a brokerage commission in connection with leasing the Leased Premises for the Renewal Term in question, based on the then current market rates. Base Rent Adjustment. The Base Rent shall be adjusted on each Renewal Term Commencement Date (the "Adjustment Date"), to adjust the Base Rent to the final Fair Market Rental Rate, determined as set forth herein, which existed ninety days prior to the Adjustment Date. Determination. Landlord shall deliver to Tenant notice of Landlord's assessment of what would be the Fair Market Rental Rate (the "FMR Notice") for the Leased Premises for the Renewal Term in question, within thirty (30) days after Tenant notifies Landlord of its intent to exercise an option to renew the Lease for a Renewal Term or Tenant is deemed under the terms of the Lease to have exercised such option by having failed to give a notice of its intention not to exercises such option, as provided for by Article 3.2 of the Lease. If Tenant disagrees with Landlord's (Acre)' 7 Page 1 of 2 Pages. �d1P(M J FAIR MARKET RENTAL RATE RIDER assessment of the Fair Market Rental Rate specified in a FMR Notice, then it shall so notify Landlord in writing within ten (10) Business Days after delivery of such FMR Notice; otherwise, the rate set forth in such notice shall be the Fair Market Rental Rate. If Tenant timely delivers to Landlord written notice that it disagrees with Landlord's assessment of the Fair Market Rental Rate, then Landlord and Tenant shall meet to attempt to determine the Fair Market Rental Rate. If Tenant and Landlord are unable to agree on such Fair Market Rental Rate within ten (10) Business days after Tenant notifies Landlord of its disagreement with Landlord's assessment thereof, then Landlord and Tenant shall each appoint a commercial real estate broker with at least five -years' full time experience as a commercial real estate broker in the GMA market. The two brokers shall then, within twenty (20) days after their designation (the "FMRR Determination Date"), provide their separate determinations and assessments of the Fair Market Rental Rate to Landlord and Tenant. Provided that the highest Fair Market Rental Rate, as determined by one of said brokers, is not more than three percent (3.0%) higher than the Fair Market Rental Rate, determined by the other broker, the final Fair Market Rental Rate for the applicable Renewal Term (the "Final FMRR") shall be the average of the two Fair Market Rental Rates. However, it the highest Fair Market Rental Rate, as determined by one of said brokers, is more than percent (3.0%) higher than the Fair Market Rental Rate, determined by the other broker, the two brokers selected by Landlord and Tenant shall select an independent third broker with like qualifications. If the two brokers are unable to agree on the third broker within ten (10) days from the FMRR Determination Date, either Landlord or Tenant, by giving five -days' prior written notice thereof to the other, may apply to the then presiding judge of any Weld County court for selection of a third broker who meets the qualifications stated above. Within twenty (20) Business Days after the selection of the third broker, the third broker shall deliver his written determination and assessment of the Fair Market Rental Rate to Landlord and Tenant and the two closest appraisals shall be averaged and the average will be the Final FMRR. Tenant and Landlord shall each bear the entire cost of the broker selected by it and shall share equally the cost of the third broker. Administration. If Tenant has exercised an option or right to renew the Lease for a Renewal Term and the Fair Market Rental Rate for the Leased Premises for the Renewal Term has not been determined in accordance with this Exhibit by the time that Base Rent for the Leased Premises during the Renewal Term is to commence in accordance with the terms of the Lease, then Tenant shall continue to pay the Base Rent in effect during the month prior to the expiration of the immediately preceding Term as Base Rent for the Renewal Term, until the Final FMRR has been determined as provided for herein above. At such time as the Final FMRR has been so determined, appropriate cash adjustments shall be made between Landlord and Tenant such that Tenant is charged Base Rent for the said expired portion of the Renewal Term, based on the Final FMRR (as finally determined pursuant to this Exhibit) for the Leased Premises. Page 2 of 2 Pages. SC El t+DULE 1.1(u) TO LEASE AGREEMENT DATED JUNE 30, 2005 BETWEEN WESTERN EQUIPMENT & TRUCK, INC., LANDLORD, AND RUSH TRUCK CENTERS OF COLORADO, INC., TENANT SCHEDULE 1.1 (u) LANDLORD'S IMPROVEMENTS This is a Schedule of Landlord's Improvements 1.1(u) to that one certain Lease Agreement dated June 30, 2005, (the "Lease") between Western Equipment & Truck, Inc. ("Landlord") and Rush Truck Centers of Colorado, Inc. ("Tenant"). All of Landlord's Improvements shall be constructed and/or installed in a good and workmanlike manner in accordance with all Governmental Requirements. All words and phrases used herein shall have the same meaning and context and shall be given the same interpretation as such words and phrases are used in the Lease and all Defined Terms and Definitions set forth therein shall apply to such words and phrases when used herein. Except as specified herein, Landlord's Improvements shall consist of a building consisting of approximately 42,425 square feet (the `Building"), comprised of approximately 14,825 square feet of office area, parts sales area and parts warehouse area (the "Office Area", "Parts Sales Area" and "Parts Warehouse Area", respectively) and approximately 27,600 square feet of shop are (the "Shop Area"), constructed in accordance with the same plans and specifications prepared by Masterworks Architects, Inc., dated May 22, 2002 (the "Rush Albuquerque Plans"), which were used by Rush Truck Centers of New Mexico, Inc. for its Rush Truck Center located at 6521 Hanover, N.W., Albuquerque, . New Mexico, 87121 (the "Albuquerque . Rush Dealership"). However, the Shop Area of the Building shall be approximately fifty (50) feet longer than the same portion of the Albuquerque Rush Dealership, in accordance with Floor Plan prepared by Alles and Associates, Inc., dated May 16, 2005. Whenever such Rush Albuquerque Plans fail to specifically identify the exact location, type, grade and/or quality the materials, equipment or other items to be incorporated into the Building, such location, type grade and quality shall be the same as constructed, in fact, at the Albuquerque Rush Dealership, unless specifically noted otherwise herein. Such Albuquerque Plans shall also be subject to such modifications as are required by applicable Governmental Requirements. The steel building frame and roof system and surface areas are to be supplied by Rigid Building Systems as per Shipping Confirmation Notice, Sales Order 22933, dated June 7, 2005. All Shop Area floor drains as contained in Rush Albuquerque Plans shall be eliminated. However, the environmental floor trap in the two wash bays shall remain as a part of Landlord's Improvements. The Office Area, Parts Sales Area and Parts Warehouse Area and shall consist of offices, sales areas, warehouse areas and other related rooms. The floor plan for the Office Area, Parts Sales Area and Parts Warehouse Area of the Building is detailed and set forth in Attachment 1, which is attached hereto. The outside surface area of the Leased Premises (the "Outside Surface Area") is depicted on Attachment 2, which is attached hereto and incorporated herein. The rear lot area of the Outside Surface Area (the "Rear Lot Area") is depicted in brown on Attachment 2. The show lot area of the Outside Surface Area (the "Show Lot Area") is depicted in gray on Attachment 2. The concrete apron area of the Outside Surface Area (the "Concrete Apron Area") is depicted in light blue on Attachment 2. The Outside Surface Area shall consist of the following: Page 1 of 3 Pages. SCHEDULE 1.1 (u) This Concrete Apron Area shall consist of a concrete apron, twenty-seven (27) feet wide, consisting of 3000 psi concrete, six (6) inches thick, outside of shop doors, as depicted on Attachment 2. The Show Lot Area, including the west entrance, shall be surfaced with 3000 psi concrete, six (6) inches thick. The Back Lot Area of the Premises shall be surfaced with gravel and/or recycled asphalt, as required by applicable Governmental Authorities. Certain areas of the Premises shall be enclosed with six (6) foot high chain link fencing, the location of which will be determined by Tenant and coordinated with such landscaping as is required by applicable Governmental Authorities (approximately Sixteen hundred fifty (1650) feet of fencing). There shall be constructed and the Premises shall be serviced by gates located as shown on Attachment 2. There shall be a rear sixty (60) foot gate to provide access to Transportation Drive, consisting of a side roll gate. A front gate shall be constructed to provide access to Weld County Road Number 47, consisting of two thirty (30) foot swing gates. One four (4) foot swinging gate shall be located to provide access by employees to Tenant's employee parking area, which is to be located adjacent to Transportation Court. Adequate electrical power for Tenant's business operations at the Premises shall be supplied to the Office Area and Parts Warehouse Area and the Shop Area, as well as Tenant's recycling equipment and all outside lighting and lighted signage constructed by Tenant. A 1200 -gallon underground concrete or fiberglass Septic Tank with all related plumbing and fixtures shall be installed on the Premises. Driveway and/or Curb Cuts, approved by all applicable Governmental Authorities, providing access to Weld County Road Number 47, Transportation Drive and Transportation Court shall be provided at the locations as shown on Attachment 2. All telephone lines, computer and other communications lines and air supply lines required by Tenant for its business operations shall be installed in the Building. A five (5) ton, forty (40) foot bridge crane shall be installed in the Shop Area at a location selected by Tenant. Provisions shall be made for adequate drainage of Tenant's wash racks. Landscaping shall be installed as per applicable Governmental Requirements, in the areas shown in green on Attachment 2 and irrigation facilities suitable to properly maintain landscaping shall be installed. Exterior lighting shall be provided for the Building and Outside Surfaced Area as shown and depicted on Attachment 3, which is attached hereto. Page 2 of 3 Pages. SCHEDULE 1.1 (u) Air conditioning in the font of five (5) 10,000 dm swamp coolers shall be provided for the Shop Area and the Parts Warehouse & Parts Area and refrigerated air consisting of two (2) seven and one/half (7 '''A) ton A/C units shall be provided for Office Area. No ductwork shall be required for the Shop Area; however, air conditioning ducts will be provided for the Parts Warehouse & Parts Area and Office Area. All concrete, site work and plumbing required in order to facilitate the installation of Tenant's wash rack environmental recycling system. Page 3 of 3 Pages. SCHEDULE 1.1 (u) LANDLORD'S IMPROVEMENTS ATTACHMENT 1 RUSH PETERBILT FLOOR PLAN # 4, KERSEY COLO PARTS WAREHOUSE APPROX. 6,790 sq / ft OFFICEf7 10' 117 lFF10E fB 17X177 RECEPTIONIST OFFICE i! 12' r10' LOCKER ROOM DAM ROOM 2i •x 11;8' 412sq!R dianimiyil.) PARIS MANAMA 1i'Y:13'1I RETAIL PARTS j SALES Approximately 11135 sq /ft J 3 J BREAK l7itM lUG ROOM ?!'x 1s r i12sa lR SCHEDULE 1.1 (n) LANDLORD'S IMPROVEMENTS ATTACHMENT 2 y1 :, . r •}� •r. • cry •. .. � � s :£., . • • • i7t`r3f!.rb•: r J� �C :!Fr;yS ^ ;1?A.r.4til4w.`.1V�tu: • • • "win SCHEDULE 1.1 (n) LANDLORD'S IMPROVEMENTS ATTACHMENT 3 LUMINAIRE SCHEDULE Symbol Labsl Qty Catalog Number Description Lamp Lumens Watts (2) KSF3 1000M AREA LIGHT W1R4 ONE 1000 -WATT CLEAR •1 .111 110000 2160 A 6 R4 HS wl KfMB PRODUCTION BT -56 METAL HALIDE, N(NT. BRKT. w130' REFL.,HOUSE SIDE HORIZONTAL POSITION. S_S.S.P. SHIELD, GLASS LENS KSF3 1000M R4 AREA LIGHT W1R4 ONE 1000 -WATT CLEAR 110000 1080 9 HS -- WI 30' PRODUCTION BT - 56 METAL HALIDE, • S.S.S.P. REFL,HOUSE SIDE HORIZONTAL POSITION. SHIELD, GLASS LENS KSF3 1000M R3 - TYPE 3 , SHORT , ONE 1000 -WATT CLEAR ill C 1 wl 30' S.S.S.P. CUTOFF BT -56 METAL HALIDE, 110000 1080 - HORIZONTAL POSITION. II KSF3 1000M R4 - TYPE 4 , SHORT , ONE 1000 -WATT CLEAR 110000 216t1 D 2 w13D' S.S.S.P. CUTOFF BT -56 METAL HALIDE, ■ HORIZONTAL POSITION. KSF3 100DM R3 -- TYPE 3 , SHORT , ONE 101)0 -WATT CLEAR F 3 w1 WALL MNT, CUTOFF BT -56 METAL HALIDE, 110000 1080 BRKT. HORIZONTAL POSITION. • 111 KACM 400M FP -- CONTOUR SERIES ONE 400 -WATT CLEAR 360fl0 462 G 10 - CANOPY CANOPY LUMINAIRE BT -37 METAL HALIDE, MOUNTED W/FLAT PRISMATIC HORIZONTAL POSITION. LENS. • • KAD 400M R4 HS -DIE-CAST CUTOFF ONE 400 WATT CLEARIII 36000 462 • H 2 -- w1 WALL MNT. LUMINAIRE WITH HOUSE BT -37 METAL HALIDE, BRKT, SIDE SHIELD HORIZONTAL POSITION. AI1.1. IIa ---a4 wool A a5srJam -4 Cfra 4reAte{ 'AC> Irig 'gig; "0.i) '0,0 '0.0 '0.0 '0.0 '0.0 '0.1 'ai 0.0 '0:0 '0.1 '0.1 '0.0 '0.0 '0.1 '0.1 '0.0 '0.0 0.0 0.0 0.0 0.0 '0.0 0.0 '0.0 0.0 '0.0 '0.1 '0.4 '0.7 '0.3 '0.2 0.{ '0.5 '0.2 '0.2 '0.4 0.6 02 0.1 0.0 0.0 0,0 '0.0 '0.0 '0.0 '0.0 '0.2 '0.9 'IA ''0 4 *al? '2 8 '1 4, '10.4 '14.7 2,0 '0.4 '0.1 0,0 0.0 '0.0 0,0 '0,0 '0.2 '•.9 '2.3 '11,8 '172 '6.9 '4,1 '13,0 16.8 '6.0 '4.2 '14.1 '15.9 4.4 '0.0 0,0 '0.1 0. '0.9 '1.7 '4.0 4.3 '4.1 '2.3 '4.7 '4.7 '4.1 '3,0 '4.9 '4.6 '3.3 '1.3 '0.4 '0.1 0.0 .0.1 0.1 0.2 0.1 0,7 0,1 0 2,9 0,2 0.5 '8.4 3.8 10.3 + 6 '2.5 '02 0.6 '1.1 '2.0 3.3 •1 '0.5 0.0 -25 '1.0 '1.3 1.9 '1 6 '0.2 0.0 '0.5 1.1 '2.1 '3.7 .3 0.6 0.0 0.6 '1.3 '32 ' ' 0 '2,3 02 -0.6 '1.3 '3.2 'QR '• 5 '2.4 '0.1 0,6 '1.1 '1.8 ' 0 '0.5 0.0 '0.6 .'0.8 '1.3 -1.0 ' 0 0.2 0,0 40.6 '1.1 '2.1 37 '•3 '0.7 '0.1 '0.5 '1.3 '3.2 i• S '1 0 '3,1 02 0.6 -1.2 '32 • 8 '2.7 '0.4 '0.9 '1.7 '3.2 ' 4 '0.7 0,1 0.3 '0.8 '0,9 `2 .3 '1.0 '0,3 0,0 0,0 '0,1 '0 : '1.6 '1.8 '2.7 '3.0 2.9 '2.6 3.4 3,3 p2.9 '2.8 '3.7 '3.8 '2: '0.0 '0.0 '0.2 `1.• '3.8 '3,0 '2,5 '2.0 '2.8 '6.4 '6.7 '3.3 '3.8 '6.1 '5,1 43,6 '3,9 4.1 '0.0 "0.1 '0.4 '1.A '145 4B '30 '2.9 '10.6 '29.8 29.5 '10.8 '9.3 '27.0 '27.1 '13.9 '5.3 "l1.4 0.0 0.1 '0.4 '1 I s '14 '4B 'a7 '1.3 '3.8 '196 4 '011 '0.0 '02 '1 • '34 R '' 9•. '1.1 '0.7 '0.0 '0.1 02 '0 . '1.8 '1.8 '1.6 '1.3 '0.7 '0.; '0.0 '0.1 '0.3 '0.7 '1.4 2y 2.7 '1,9 0.9 0 '0.0 '0.0 '0,2 '1.1 '21 ;'-4 '3.1 '1.4 '0.) '1„;: -'97r - M '0.0 '0.0 '0.2 0.9�3.2 '.1/4:1R-'1132- �/-"mr'5.0 '12 '0,' '0.0 '0,0 0.2 '0. \\'\'2.9 'f'C'21.0 '4.6 '1.3 .0.i '0.0 '0,1 '0.3 '1...,\.\‘',2,7 •�f0� 13.4 3.7 '1.7 0.5 '0.0 '0.1 '0,4 '1.(\1.7 . ( '3.3 '2.5 '1.2 0./ '0.0 '0.1 '0.4 '1, \\\'2.0 ' . '5.7 '2.6 '1,3 '0,1 '0.0 '03 '1. \2.0 ;7_12_ 29 '1.4 '0.p 0.0 '0,0 '0.2 '1.1 " 3.r3 `,:4'1 '16 1 '5,2 '1.6 'o.P '0.0 '0.0 '4.1 '1.0 '04 '0.0 '0,0 '02 -12\28 aJ. '16.5 -4.2 '1.8 '0. 0.0 40,1 '0.3 0,5 '1.8 '3.4 '3.2 '2.3 '1.3 43 0.0 '0.1 '0.3 0 -2.3 -2.6 '2.4 '2.5 '2.5 0.0 '0.1 '02 1,4 '4.0 '3.2 '2.2 '2.7 '5.7 4 '0A '0,1 0A '12'3 '14.5 '5.2 '2.9 '2.2 'D.0 '0.1 '0.4 `109 '13.6 52 '2.9 1.8 1.2 '0.0 '0.1 '0.2 '1 '4.1 '3.3 '2.3 '1,6 0,0 40.1 0.3 1. '4.9 '4.0 '2.8 '2.0 1.6 2,1 5.5 7.1 7.8 52 4.5 3.3 '4,8 9.1 1 72 0,4 0.1 : 0.0 0.1 '0,5 '1 6 '15,3 '6.3 '42 2,5 22 2.1 24 '3.9 '3.3 '3.6 '3.2 '3.8 4,9 '8.5 5. '2.2 0.4. 0,1 I '0.0 '0.1 '0.8 •113 '14,5 '7.5 '5,8 44.0 '3.3 '3.0 '3,9 '3.5 '4.0 '4.8 '4.5 '6.3 '7.3 :12,8 ' '9.9 '0.6 '0.1 I '0,0 •0.1 '0.4 '1 4.6 '7.0 '7,1 '5.8 '4.9 '8.0 '6.0 '4.9 '6.1 6.1 '6.3 '7,3 '9.4 '15.4 • ` '11.8 '0,5 0.1 I 0,9 '0.1 '0,3 '13 ' .8 '15,8 '22.1 '10.0 '7.1 '19,9 '19.5 72 17.0 '22 ' 10,6 13.1 • 8 '17.2 '6.1 2.4 '0.3 0.1 I '0.0 0.0 00 '0,2 -1.4• '12.2 25,4 5.05.0 3.2 '1 '18.6 3.3 '12.6 '24.7 '0,3 '8.8 482 -11.5 24 0.4 '0,0 0.0 1 '0.0 '0.0 '0,0 '0.0 402 '0.5 '1,0 '6.4 '0.3 0.9 '0.8 '0.4 '3,6 '12 '0.8 40,5 '1.4 '1.0 '0.4 0.1 0.0 0.0 I '0.0 '0.0 '0,0 40.0 '0.0 '0.1 '0,1 '0.1 '0.9 0.1 '0.1 0.0 '0.1 '0.2 '0.1 'Q.2 '0.2 -0,2 0.1 '0.0 0 + 9,0 0.0 0.0 • • • M '02 0.4 '0,9 '2.0 '62 '3.9 '1.5 '0►) '0.6 '1.5 '3.9 '14,4 '8,7 '2.3 0.0 0.0 0.0 0.0 0.0 0,0 0.0 '0.0 0.0 0.0 0,0 0.0 0.0 0.0 0.0 '0.0 0.0 0.1 0.1 0.3 '0.7 '1.8 '2,5 '3A 13.. z 5 '3.2 0.7 k '10.2 '4.9 '4.2 16 '94 •4 '0.7 '4.0 '3.7 '' I '4.5 '1.6 '0A 2.1 '3.9 7,9 '3.6 0.5 '0,1 '4.4 11.7 8 13.1 0.8 '0 '0,0 '0,0 '0:9 '0. SCHEDULE 1.1(v) TO LEASE AGREEMENT DATED JUNE 30, 2005 BETWEEN WESTERN EQUIPMENT & TRUCK, INC., LANDLORD, AND RUSH TRUCK CENTERS OF COLORADO, INC., TENANT SCHEDULE 1.1 (v) TENANT'S IMPROVEMENTS This is a Schedule of Tenant's Improvements 1.1(v) to that one certain Lease Agreement dated June 30, 2005, (the "Lease") between Western Equipment & Truck, Inc. Landlord") and Rush Truck Centers of Colorado, Inc. ("Tenant"). All words and phrases used herein shall have the same meaning and context and shall be given the same interpretation as such words and phrases are used in the Lease and all Defined Terms and Definitions set forth therein shall apply to such words and phrases when used herein. Tenant's Improvements shall consist of: Peterbilt and other signage meeting Governmental Requirements. (Landlord to run power To sign, ) Computer and communications system Recycling system for wash rack Air Compressor. Oil Distribution system Steam Cleaning System Parts Bins All floor tile supplied by Tenant (Landlord to install) Agreement for Acceptance of Leased Premises 26956 WCR 47 Greeley, CO 80631 This is an Agreement for Acceptance of Leased Premises, dated this 1st day of March, 2007, between Western Equipment & Truck, Inc. ("Landlord") and Rush Truck Centers of Colorado, Inc. ("Tenant"). As used herein, all words, terms and phrases shall have the same definitions and shall be used in the same context as such words, terms and phrases are defined and used in the herein below described Lease. RECITALS A. Lease Agreement. On June 30, 2005, Landlord and Tenant entered into a Lease Agreement (the "Lease") for the lease by Tenant from Landlord the real property and building located at 26956 WCR 47, Greeley, CO 80631 (the "Leased Premises"), with the Commencement Date to be the first day of the first month, which followed the substantial completion of Landlord's improvements to the Leased Premises. B. Substantial Completion of Landlord's Improvements. Landlord's Improvements have been Substantially Completed, Tenant has taken possession of the Leased Premises, but a number of items, which are a part of Landlord's Improvements, remain to be completed by Landlord. C. Walk Through; Punch List Items. On February 24, 2007, John Barker, representing Landlord, and Bob Condon, representing Tenant, conducted a walk through of the Leased Premises and compiled a punch list of items needing to be completed by Landlord (the "Punch List Items"). A list of the Punch List Items is attached hereto as EXHIBIT A D. Additional Work. During the course of the construction of Landlord's Improvements, Landlord made design changes and upgrades to the original agreed upon plan as requested by representatives of Tenant (the "Additional Work") and Landlord has provided Tenant with a list of items, which Landlord has claimed as being such Additional Work, which list is attached hereto as EXHIBIT B. E. Temporary Certificate of Occupancy; Requirements for Permanent Certificate of Occupancy. Landlord has secured a Temporary Certificate of Occupancy (the "TCO"), which will expire on March 31, 2007, which also requires the completion of certain items by Landlord (the "CO Items") in order to secure a permanent Certificate of Occupancy (the "CO"). F. Agreement of Landlord. Landlord has agreed that if Tenant will pay the herein agreed amount for the Additional Work (the "Agreed Payment"), Landlord will take such action as is required to complete the CO Items and secure the issuance of the CO prior to the expiration of the TCO and, subject to reasonable delays for adverse weather conditions, complete the Punch List Items on or before March 31, 2007. G. Agreement of Tenant. Tenant has agreed, in consideration of the agreements and covenants of Landlord contained herein, to pay the sum of $195,000 to Landlord (the 'Agreed Payment") in the manner as set for the herein. The Agreed Payment is to represent full payment of all amounts due Landlord for all Additional Work and any other sums due Landlord for the completion of Landlord's Improvements and the securing of all permits required for the occupancy of the Leased Premises, including the TCO and CO. Page 1 of 2 Pages. RIF;(nEWED MAN 6 .uU / doh d t/o 701,0 -/ Agreement for Acceptance of Leased Premises TERMS AND CONDITIONS OF AGREEMENT NOW, THERFORE, in consideration of the matters set forth in the foregoing Recitals, the covenants, agreements and obligations of the parties as set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both parties hereto, it is agreed that: 1. Commencement Date. The Commencement Date of the Lease is March 1, 2007. 2. Payment of Agreed Amount. On or before March 2, 2007, Tenant will pay the Agreed Payment to Landlord, by wire transfer to Landlord's account. 3. Complete Payment. The Agreed Payment represents full and final payment to Landlord for all sums due Landlord for all Additional Work as well as any other sums due Landlord for the completion of Landlord's Improvements and/or any other improvements to the Leased Premises, including but not limited to the items listed in EXHIBIT B. 4. Securing of Certificate of Occupancy. Landlord will secure the issuance of the CO prior to the expiration of the TCO. 5. Completion of Punch List Items. Subject to reasonable delays due to adverse weather, Landlord will complete the Punch List .Items in a good and workmanlike manner on or before March 31, 2007. 6. Terms and Provisions of Lease. All terms and provisions of the Lease, except as herein modified or specified, shall remain in full force and effect. 7. Gender and Number. Unless otherwise required by context, the genders shall include each other and the singular shall include the plural and the plural the singular. 8. Headings, Etc. Headings, table of contents, captions, titles and marginal notations are for convenience only and shall not limit or restrict the interpretation or construction of the passage(s) to which such headings, table of contents, captions, titles and notations may relate. AGREED, to be effective as of the Effective Date first set forth above. LANDLORD: WESTERN EQUIPMENT & TRUCK, INC. By: Cra}grSparrow, Pres Page 2 of 2 Pages. TENANT: RUSH TRUCK CENTERS OF COLORADO, INC. By: John Barker, General Manager I„ a a LL O Ol a O] J I O 7 a Comment 2 places grout O d c or c 'o (ding left of door this room needs to lank pzcanant i L � LS c L 3 = O c 35 5 v it marks Iw_ side of door (vent over door? q a E 0 to L 3 in m w tape on mopboard• chain down on mezz tape on conduit by closet by phone near Cr; ca E E o o 0 3 O ul corner frame _ ile like driver louge restroom _ ouge restroom at of counter Eof fire lite C plug fountain fines I I mat cabinet ends flash & trim overspray on wall by col paper by elec sw corner outside dinged door opening dent lair line to evaporator I I Transportation court to be completed as per Town of Kersey's request _ Equipment&Truck, Inc. Door 'ding by beam `a .0 a Y a `paint splatter near top rt a N p a 0 ;- E Cy Em outlet near SW ove door 3 column re!! (check caulkirq and improve appearance west window North of parts entrance bottom trim missing accent cut accent cut i a 0 tit I m fit marks on cr panel ab Eo39 o a vki O a O 6 a, - touch u ma (lines for oil & equip SW corner steel in & out I outside south wall plastic hanging door roller out paint shower ceiling uncover drain s CO 8 fabric 0) C Ti 0 E K Vi !fit of frame r i tit fit V fit w 4= �E 0i fit fit fit &frame fit 0 m � �F i 1.4 a c a co — d N [bent post I roof leaks add chain lin w (Exhibit A to Lease Acceptance Agreement k Centers of Colorado, Inc. and Weston it I. 0 0 W 0 E 0 co *01- `o' 3 R o cao Equip room I l .0 c a a W ya i] Adjust green gate I Adjust galv gate east side Vent above E patio as 2r NMYla .0 Do Q en d g e' G o I. -ml u men UanmM a counter by cont rc ���I la pts saless c E 6 co - '.•�� 15 cashier 16 hallway 17 Drive lounge alum oilsgL] 1ssvc mgr 20 svc wrt up Q m E O• ai Nf ee storage mech counter south "' yN N 3 >. m e. ea 3 N enN 3 1 a east acer room locker room a1 c ii N 9(a ; L J . Fence toeast C T: mono rea gate a. m a �J on 33 gm to gale gate y a O as q O L ITS ware p N a 4 °J 0 J 2 C a` a E O V CO (OCOoM r- CO Na7 EPr(f764 r VO Of O ( W W C7()N Yi V'o V' 69 r r fA COO (r 0 N 696469 CO rN • CO \ N" 1 69- V' ti V' V' 69- Or W (O 64697(96964 CO t V• V' V. NO)r CO C) (7 COO V' (O W 01 r Eff (O0 CO r v EA V' h 69 (O (D (D 64 t C/9 (ON (O CO 69- (O 'q ' rN to (D CO O) lfl in e} V' C.6 6464 CO (7 N V.. i CA - C a) L Larry Lowe Larry Lowe Tommie/ BR Y Joe Johnson I wes/alwwol'i Rick Holland o IBobL T co John B o) H N H CO N H Q)0 CO o) t° m CDCO CB Rick H why more offices Cr) E . C v N 0. a. co appearance appearance/ maint appearance cony/ efficiency coriv/ efficiency J cony/ efficiency cony/ efficiency cony/ efficiency convenience _ risk mgmt e' o) �0o c) o) appearance cony/ efficiency (engineering _I C 0 C 0 C 0 ppE a cr N maintenance i. t N .V E Exhibit B to lease acceptance agreement IRush Truck Centers of Colorado and Western Equipment & Truck Inc. Estimated costs of customer changes as of Feb 27,2007 description increase 7009sf to 7817 2&3 hr rated partitions in lieu of sprinklers move twice after framed .50/ sf for point to point instil tile walls to 4' 9" caulk top of sq edge mopboard accent color on 13 walls cabinets on main ctr, doors on rear ctr cabinets under fwd add entire rear pts counters shop manual cabinets additional cabinets & counter add sink floor cut for plumbing add data port in center cut floor 8" floor vs 4" Alb to support mea raise ceiling to 12' added data ports eliminate 2 water fountains eliminate urinals individual bay exhausts increased elec drops upgrade air drops upgrade water drops I radiant heat 'drop body shop ofc. & non rated partition add 'add Chemlite panel Tube lighting I Item / location increase sf Fire Partitions move pts mgr door f tile install I front restrooms tile install accent walls parts counter phone parts counter Tread brite on counters 3 L training & break training & break conf room parts warehouse parts saless/display co parts sales & driver lou reestrooms Iventilation exhaust C E 0 C 0 C 0 'general Equip rooms wash bays rol ¢` ( FRONT front office G o y N N (D 7 fA (D CO tp r Vi W ID r 69 CO %_ 'V' -EA V3S CO 'V' O) N r fA r 1-- 69-S CO N r $ 233,512 -i .0 0 m Risk Mgmt _ Risk Mgmt code 'convenience grn fence for front plus reloc & orn security alb 18 p 18 1p K 18p 24 1p bldg 14 vs 15 outlets on posts approval costs from town contactors & breakers unload equip for Rush subs cleanup after subs Itraash hauls for Rush material I OTAL CHANGE Itence upgrade gate upgrade c L rno}I O t Peterbilt sign lighted signs I ! I GENERAL ITEMS rn c_ v 0 z0 c a) r 0 ca I 7 O I I I I Year CE Ata, :TAX Account Num Parcel Address R4100106 26956 CR 47. Kersey: R4100206. 26950-00 47, Kersey. R41003C06 2095'6 qt,47., Kettey 84100406 269'56 CR:47, Kersey R4100506. 26956 CR 47, Kersey R4100006 26956CR41. Kersey R41007Gi6 26956 G1147. Kersey 1id10b$lf6 26956CR47 Kersey 84100906 2695$ et 47, Kersey: July 22, 2013 CLERK TO THE BOARD PHONE (970) 336-7215, EXT 4226 FAX (970) 352-0242 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 WESTERN EQUIPMENT TRUCK INC 2055 1 AVE GREELEY, CO 80631 Account No.: R6783222 Dear Petitioner(s): The Weld County Board of Equalization has set a date of July 30, 2013, at or about the hour of 1:30 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 5, 2013, and mailed to you on or before August 12, 2013. Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. AS0085 WESTERN EQUIPMENT TRUCK INC - R6783222 Page 2 Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOARD OF EQUALIZATION r0( Esther E. Gesick Deputy Clerk to the Board cc: Christopher Woodruff, Assessor RYAN 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 AS0085 BOE SUMMARY SHEET Account Number: R6783222 WESTERN EQUIPMENT TRUCK INC 2055 1 AVE GREELEY, CO 80631 HEARING DATE: July 30, 2013, AT 1:30 PM ON) %lepi>b�ie- HEARING ATTENDED? NAME: AGENT NAME: RYAN APPRAISER NAME: Comes / 4a n 5251 DTC PARKWAY ONE DTC SUITE 1045 GREENWOOD VILLAGE, CO 80111 ditCekjetek DECISION ACTUAL VALUATION APPROVE BY ASSESSOR SET BY BOARD TOTAL ACTUAL VALUE $2,206,100.00 a 0747, j ma 0 COMMENTS: r l MOTION BY J`0' TO semi 15 - /tad/o/it/ SECONDED BY / A Failed to prove appropriate value No comparables given Assessor's value upheld Other: Conway --GIN) Garcia -- N) rreevortA bent -- Rademacher -- N) &xh,`,6/`H (me /ace) RESOLUTION NO. 2013-2022 M:\CBOE\Letter Templates\Summary Sheet.docx a)(645CD Tammy Waters From: Sent: To: Cc: Subject: Hi Tammy: Eisenach, Audria [Audria.Eisenach@ryan.com] Monday, July 29, 2013 3:13 PM Tammy Waters James, Ian Appeal on Rush - Western Equipment Truck Parcel R6783222 Could you please setup a telephone hearing for the above referenced property with our Mr. Ian James? His telephone number is 720.315.5250. I have copied him on this email in case you need any other information/communication with him. Our hearing is scheduled for tomorrow, July 30th, at 1:30pm. Thank you for your help with this!!! Audria Please note new address & phone number effective June 12, 2013. Audria Eisenach Senior Tax Analyst Ryan LLC 5251 DTC Parkway, Suite 1045 Greenwood Village, CO 80111 Phone: 720.524.0022 audria.eisenach@rvan.com www.rvan.com Innovative Solutions to Taxing Problems From: Tammy Waters [mailto:twaters@co.weld.co.us] Sent: Monday, July 29, 2013 9:10 AM To: Eisenach, Audria Subject: FW: Ryan Appeals Hi Audria, Courtney is unable to change the schedule unfortunately. Please let me know if I can be of assistance in any other way. Thanks and have a great day. Tammy Waters Deputy Clerk to the Board 1150 O Street)P.O. Box 758 (Greeley, CO 80632 tel: (970) 336-7215 X5226 6%3 '- o Vc(9, Hello